Arla had already announced an investment of 800 million DKK (107 million euros) in its facility in Lockerbie, Scotland.
Last week, Arla Foods Ingredients formed a partnership with Valley Queen Cheese Factory in South Dakota. Valley Queen processes about three billion pounds of milk annually and produces 330 million pounds of cheese. The partnership will focus on producing Nutrilac ProteinBoost, a whey protein concentrate that increases the protein content in dairy products without compromising taste or texture. Production is expected to start in the winter of 2025/2026.
Demand for high-protein dairy products continues to rise in the US. To meet this demand, Arla deemed it essential to expand the production capacity of Nutrilac ProteinBoost. Doug Wilke, CEO of Valley Queen, expressed enthusiasm about collaborating with the Danes.
He praised Nutrilac ProteinBoost as an innovative ingredient that enables the production of dairy products enriched with high-quality proteins. Wilke looks forward to a long and productive partnership with a world leader in whey-based nutrition. The Danes and Americans did not disclose the financial terms of the collaboration in their press release.
In addition to the expansion in the US, Arla plans to invest 800 million DKK (over 100 million euros) in its dairy factory in Lockerbie, Scotland. This investment aims to convert the factory for UHT (ultra-high temperature) and lactose-free milk. UHT milk undergoes high-temperature treatment, allowing it to be stored without refrigeration until opened.
The proposed investment in Lockerbie may lead to the closure of Arla’s facility in Settle (in northern England) and could also impact employees at the Stourton plant. Therefore, a consultation period with affected employees has been initiated to support them during this transition.
These strategic investments in both the US and the UK demonstrate, according to market experts, Arla’s commitment to its international market position and to addressing the growing demand for specialized dairy products. By collaborating with established local companies and investing in modern production facilities, Arla claims it aims to consolidate and expand its presence in key markets.