Arla Foods Ingredients, a division of Danish dairy giant Arla Foods, is making a significant investment in an existing factory in Argentina. The investment aims to enhance the production capacity of proteins and infant-formula applications, supporting the growing demand for high-quality whey ingredients in Latin America and globally.
The upgrade will involve the addition of a new drying tower, scheduled for completion by 2026. This expansion will more than double the production of permeate powder, a high-lactose ingredient used by food manufacturers after proteins are removed from milk.
Arla Foods has received approval to produce dairy proteins for infant-formula products at the upgraded Porteña plant. Despite the ongoing economic challenges in Argentina, the company remains committed to investing in the country, citing previous satisfactory results. Arla Foods has been operating in Argentina since 2000 and is confident in its ability to achieve future growth.
No financial breakdown for its Argentine operations was provided in Arla Foods’ 2022 annual report. However, the company acknowledged inflationary pressures and volume declines affecting its first-half results for 2023. To meet the strict global standards in nutritional value and hygiene required for producing infant-formula ingredients, the Porteña facility has undergone substantial preparation, including sourcing local base products and ensuring raw materials meet quality requirements.
Henrik Andersen, CEO of Arla Foods Ingredients, expressed pride in the company’s ability to produce for the Latin American infant sector. The investment in Argentina has required significant time, resources, and collaboration between Danish and Argentinian departments, as well as local dairies. Arla Foods Ingredients looks forward to further expanding its business with the upgraded facility.
