Arla Foods has put a fresh figure on the cost to its business of the boycott of Danish products in the Middle East.
Arla sales ground to a halt in the Middle East
The Danish-Swedish dairy giant now estimates that the boycott will cost it £37m ($64m) this year.
Its previous predictions have been as high as £50m, and at one time it said it was losing more than £1m a day.
The boycott, which started in January, was caused by caricatures of the Prophet Mohammed first published in a Danish newspaper.
'Not giving up'
In a statement on Thursday, Arla said its new estimate could change yet again, but insisted it remained committed to its Middle East markets.
It said the new £37m estimated loss "assumes that Arla cheese and butter are quickly returned to stores in the Middle East and that Arla by the end of 2006 sells 50% of the amount sold before the boycott".
Arla, Europe's second largest dairy foods business, does between 6% and 8% of its trade in Arab countries.
"Even if the situation looks very difficult, we believe that Arla has a future in the Middle East," said Arla chief Peder Tuborgh.
"We have an in-depth knowledge of the market [in the Middle East] and will not give up so easily."
Although the offending cartoons were first published in small Danish newspaper Jyllands-Posten last September, the controversy did not flair up until they were reprinted in other European newspapers in January.
Arla has already put full-size advertisements in major Saudi newspapers to disassociate itself from the cartoons.