Arla focuses on youth talent, sustainability in Bangladesh

Global dairy giant Arla Foods plans to expand its operations in Bangladesh with a focus on affordable nutrition, local talent and long-term investment in the country's dairy sector, according to Magnus Glennborn, vice-president and head of Southeast Asia at the company.

He said Arla has introduced smaller pack sizes to ensure affordability amid strained household spending, while fortifying products like Dano Daily Pushti with protein, calcium, and vitamins.

In an interview with The Daily Star, Glennborn said that innovation continues in family packs and value-added formats.

Besides, the Danish-Swedish multinational co-operative sees its work on local talent development as equally important.

Glennborn described it as "a deliberate investment" in "empowering people on the ground".

He said, "In smaller markets, centralised control does not work. You need to empower people on the ground."

Born in Sweden, the Arla vice-president studied international business in English before moving far from home.

He spent time in the United States and later in Taiwan. After an internship in Saudi Arabia, he joined Arla's graduate programme and took up posts in Dubai, Denmark, Sweden and Australia.

He now heads the company's Southeast Asia operations from Malaysia.

"The more countries I have worked in, the more I have seen the commonalities in people rather than the differences," he said, describing his approach as engaged, passionate and empowering.

Glennborn called Bangladesh's human capital one of its greatest resources. "Bangladesh has a vibrant and fast-evolving talent pool," he said.

"What stands out is the ambition, adaptability, and openness to learning that professionals here demonstrate."

The top executive said Arla runs leadership schemes, functional training and regional programmes to expose Bangladeshi staff to global best practice. Many now hold positions across Arla's network.

The company is best known in the country for its flagship brand Dano. For many families, the red-and-white packet of milk powder is more than a consumer product. Rather, it is a daily ritual and a trusted source of nutrition.

However, inflation, currency movements and shifting consumer habits are changing household spending.

"One key shift is focusing more on powdered dairy. It is scalable, shelf-stable, and cost-effective," Glennborn said.

He said Arla has introduced smaller pack sizes to ensure affordability, while fortifying products like Dano Daily Pushti with protein, calcium, and vitamins.

The company has also adapted to local purchasing habits with small sachets priced at Tk 10, allowing families to buy daily without compromising quality.

This approach, Glennborn said, supports the United Nations Sustainable Development Goals on hunger and health.

Citing the Bangladesh Nutrition Monitoring Report, he said, "About 26 percent of children under five are stunted, and 22.6 percent are underweight. Micronutrient deficiencies, particularly in vitamin A, zinc, and iron, remain widespread. That is why we have focused on inclusive dairy nutrition through products like Dano Daily Pushti, introduced in 2016."

The company's Gazipur factory operates to European safety and hygiene standards and won a national award in 2022. It now looks to deepen its presence in Bangladesh by investing directly in the local dairy sector.

"While we are not currently sourcing milk locally due to supply chain limitations, we are working to change that by investing in long-term solutions," Glennborn said.

"Increasing milk productivity is crucial to making local sourcing viable. Currently, milk yields in Bangladesh are low, and collection infrastructure is insufficient."

He said one of their most significant initiatives is the Green Dairy Partnership in Bangladesh, a five-year project valued at about Tk 254 million.

"It is funded by the Danida Green Business Partnership under the Danish Ministry of Foreign Affairs, and we are working with partners such as Pran Dairy, Solidaridad Network Asia, IDRN-Bangladesh Agricultural University, SEGES Innovation, and the Danish Agriculture & Food Council."

For Bangladesh, foreign direct investment remains a priority.

In this regard, Glennborn said the country still needs improvements, from easing regulations to upgrading infrastructure, but he sees Arla's presence as a positive signal.

"We are also proud to act as a flagbearer for Danish business in the region. Through innovation, local empowerment, and strategic collaboration, Arla is committed to being an ambassador for Bangladesh on the global stage, encouraging others to invest in the country's future," he concluded.