It's currently at a point where our turnover is only at half the level that we had expected for this year" in the region, Arla Foods spokesman Theis Broegger told AFP.


If the trend were to continue for the full-year, the loss in earnings would amount to 1.3 billion kroner (174.28 million euros, 274 million dollars), he said, "but we don't anticipate it to be like this the entire year."

Consumers in Muslim countries have boycotted Arla's products since 17 Danish newspapers in February reprinted a controversial caricature of Prophet Mohammed drawn by a Danish cartoonist.


Arla Foods was also subjected to a boycott in the Middle East in 2006 and suffered a loss in earnings of some 450 million kroner at the time, Broegger said.

Broegger said, "In 2006, our sales had a complete stop. This time it's different, we still sell, but there is an impact, so it's still serious for us," he added.

Saudi Arabia, Arla's biggest market in the Middle East, "is one of the countries where we are worst hit right now."

Arla Foods, which exports products to about 100 countries, makes 73 percent of its turnover on its home markets of Denmark, Sweden and Britain, where it has production facilities.


Agencies