To expand business in international markets such as the Middle East, West Africa and Southeast Asia
Denmark-based Arla Foods 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 in-ternational demand for sustainable, affordable and nutritious dairy products.
To help bridge this cap, 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.