Arla invests more in Argentina

Danish dairy group Arla Foods is increasing its investment in Argentina by a further $10 million (€6.5m) to boost its processing capacity and target new markets.

The company announced last year it would invest $20 (€13m) million in expansion of its factory in Portena. It will now add further funds to bring in new equipment and processes that make better use of the raw material, whey, and produce ingredients for the ice cream and cheese markets.

The Argentine factory currently produces added value whey protein powder sold as ingredients to the dairy and bakery industries. Current production, however, only uses 30% of the total raw material. So far, humidity has made it impossible to use more, according to the firm.

The new investment will fund extra equipment including a spray tower to allow for 100% use of the raw material. Previously the whey not used for food ingredients was sold on to the animal feed market.