Copenhagen - Danish food company Arla was Monday reported to again be struggling with a consumer boycott in the Middle East in the wake of anger against the re-publication of controversial cartoons of the Prophet Mohammed.

Sales in the region have halved although the group still sells its products in most markets, sales director Finn Hansen told newspaper Jyllands-Posten, estimating the sales drop to be 1.3 billion kroner (274 million dollars).

Arla was also targeted in 2006 in the wake of the crisis triggered by the publication of 12 controversial caricatures of the prophet when religious and political leaders called for a boycott.

The cartoons, including one of the prophet with a bomb in his turban, were reprinted earlier this year after Danish security police made three arrests in connection with a plot to kill newspaper cartoonist Kurt Westergaard of the Jyllands-Posten.

The current boycott was apparently a reaction by local consumers, Jyllands-Posten reported.

Danish dairies were preparing to cut production and possibly slash jobs, the report said. (dpa)