Fazer Lifestyle Foods is planning to cease dairy production at its facility in Koria, Finland, as it aims to focus on its core business revolving around plant-based products.
The decision to cease dairy production could lead to the termination of a maximum of 95 permanent positions, the company noted.
Kati Rajala, vice president of Fazer’s non-dairy and dairy business, said, “If the dairy business were to be discontinued, we will support our employees and do our utmost to help them find new jobs.
"Vacancies in other Fazer Group units will be offered with priority to those employees whose employment would possibly be terminated. We will also liaise with the local employment administration.”
Currently, Fazer purchases milk from approximately 20 dairy farmers in Southern and South-East Finland. The company believes that other diaries will be interested in cooperating with them.
Focus On Core Business
The possible discontinuation of the dairy business would take place in August 2023, Fazer noted.
If the plan is executed, the Koria factory will focus solely on oat drinks and other oat-based products.
The changes are part of the company's strategy to leverage its strength in oats and increase its share of plant-based products.
Rajala added, "With our small scale in dairy production, we are uncompetitive and have been challenged even more in the recent inflationary environment. Improving the efficiency of our Koria operations is inevitable to secure our competitiveness.
"A possible discontinuation of the dairy production would enable us to focus on our plant-based core business, in which the Koria factory plays an important role in the future."
Fazer Lifestyle Foods
Over the past three years, the Nordic company invested over €300 million in the production of oat-based products.
The company is implementing measures to develop plant-based food solutions for the future, in which oat drinks play an important role.
Last summer, it doubled the production capacity of oat drinks at the Koria factory.
The facility uses Finnish oats for manufacturing plant-based Fazer Aito oat drinks, cooking products and snacks. It also produces dairy products, primarily for private-label brands.
Located close to the city of Kouvola, the Koria facility employs approximately 220 people.
© 2023 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
