A subsidiary of Denmark’s renowned dairy conglomerate, Arla Foods, is embarking on a significant expansion of its existing facility in Argentina, with a primary focus on protein and infant formula applications.
Arla Foods Ingredients has unveiled ambitious plans to enhance its plant in the city of Porteña, Argentina, through the construction of a new drying tower. Although the exact investment amount remains undisclosed, this development is being touted as a substantial upgrade to the facility.
The new tower, expected to be operational by 2026, is poised to more than double the production capacity of permeate powder. This high-lactose ingredient is derived from milk through the removal of proteins and is utilized by food manufacturers worldwide.
Arla Foods has underlined that this expansion in the Porteña plant is strategically designed to meet the increasing demand for premium whey ingredients, both in the Latin American region and across the global market. Notably, the facility has also received authorization to produce dairy proteins specifically tailored for infant formula products.
This investment in Argentina is occurring against the backdrop of the country’s economic challenges, characterized by hyperinflation and a local currency, the peso, experiencing rapid devaluation. Henrik Andersen, CEO of Arla Foods Ingredients, acknowledged these economic factors while announcing the expansion on October 9th.
Despite the economic difficulties, Arla Foods is forging ahead with its commitment to expanding its presence and production capabilities in Argentina, reaffirming its dedication to delivering high-quality dairy ingredients, including those critical for infant nutrition.
