Monday, July 4, 2022

Arla inaugurates its biggest dairy investment to date

Arla has officially inaugurated a new production plant at Pronsfeld dairy in Germany. The expansion is Arla’s biggest dairy investment to date and a key driver to meet the growing international demand for sustainable, affordable and nutritious dairy products.

Arla has invested EUR 190 million in the expansion of its dairy in Pronsfeld, Germany to increase the production of primarily milk powder. Pronsfeld is Arla’s largest dairy, and the investment is the company’s biggest single investment in a site. The expansion will support the expected annual branded volume growth of 5-7% in Arla’s international business in line with the company’s five-year strategy called Future26.

The expansion of Pronsfeld dairy includes a production plant that holds a 51-meter-high drying tower as its centerpiece and can process 685 million kilos of milk per year, creating an end-product of around 90,000 tons of high-quality milk powder. Due to the nature of milk powder and its long shelf life, it is particularly suitable for Arla’s international markets, where milk powder is an integral and important part of the local diet, especially in fast-growing urban areas.

The raw milk needed for this is sourced primarily from Arla farms in the region and creates a sustainable channel to support higher returns to farmer owners.

Peder Tuborgh, CEO at Arla Foods, says: “I am very pleased to inaugurate the expansion of our Pronsfeld dairy today. Securing that as many as possible have access to a good, nutritious diet every day is one of the biggest challenges we face globally.

“As part of our recently launched Future26 strategy, we will strengthen and expand our business in international markets such as the Middle East, West Africa and Southeast Asia where the demand for affordable, nutritious dairy products exceeds local production as well as local supply. As the largest Arla dairy in the world with a strong export business, the new production plant gives Pronsfeld an even greater place in the growth strategy of our international business.”

Executive vice president and head of Arla’s supply chain, David Boulanger, says: “I am very proud about the work of the Arla teams who, together with our partners, have enabled this expansion of our Pronsfeld dairy to come to life.

“This is an important step in the evolution of our manufacturing footprint towards more efficient and decarbonized dairy production, building on our strengths here in Germany and leveraging the latest technologies. This sets the standards for our future generation of assets that will support our new strategy to be a leader in value creation and sustainability.”

The construction of the production plant was initiated in 2019. Today, Pronsfeld dairy employs 1,000 people and produces dairy products to around 70 countries globally.

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