• Loss of milk through processing is a focus in all Arla plants.
• Dairy at Gothenburg (Sweden) launched a specific campaign aimed at reducing production waste by actions such as changing batch size or using less machines and lines.
• 50% cut in waste has been achieved since initiating the project 5 years ago.
  

Minimise the loss of milk is one of the more critical aspects to work with. Arla works with this in all production facilities, but one of the plants succeeded very successfully with cutting milk losses is the Gothenburg Dairy that about five years ago launched a campaign aimed at reducing production waste. The result was a 50 per cent cut in waste - and savings running into millions of kroner.

Dealing rationally with waste can be highly profitable for businesses of the size of Arla Foods. If any proof is needed, just go to Arla's dairy in Gothenburg on Sweden’s west coast. Through ongoing improvements, the dairy has been able to reduce waste year-on-year over several years. Production Manager Christian von der Lancken explains: "Although Arla has always strived to reduce waste, we’ve probably not quite understood the full value of our work. Five years ago we began to measure and analyse waste more carefully and to compete against ourselves on a weekly basis."

The entire dairy was surveyed and the employees were asked to come up with ideas and solutions. A key part of the process is that everyone is committed and dare to ask questions about the way we work. Now most of the initiatives identified are implemented and new ones are continuously added to the list. This kind of exercise never finishes.

Another parameter is getting the sales forecasts right so that the right volumes are produced at the right time. This is where the Planning Department in Stockholm comes into play. Sofia Bårman is Head of Planning and explains: "For us, it’s extremely important to get our forecasting and planning right. With the volumes Arla produces, each deviation from the forecast and every planning error cost a considerable amount in terms of discarded products or lost sales. It is also important that shelves don’t stand empty. Cold store planning is like planning what you have in your fridge at home. It’s all about storing what we need so we avoid throwing food away."