Arla Foods Ingredients Consolidates its Position in South America
Arla Foods Ingredients has agreed to buy the 50% stake in Arla Foods Ingredients SA (AFISA), its joint venture in South America, from partner SanCor, an Argentinian dairy co-operative. Founded in 2001, and operating from a plant in the Argentinian province of Cordoba, AFISA processes approximately 900 million kilos of whey every year, which makes it the largest whey processor in Argentina and the South American trade bloc, Mercosur. Further terms and conditions of the transaction were not disclosed.
“Arla Foods Ingredients greatly appreciates the collaboration with SanCor for the last 17 years. SanCor and Arla Foods Ingredients have agreed amicably that it is now time to move forward with our businesses separately,” says Henrik Andersen, Senior Vice President in Arla Foods Ingredients. “For Arla Foods Ingredients this is a unique opportunity for continued strategic growth in our whey business in general and specifically in South America; and AFISA will become a significant element in Arla Foods Ingredients’ global supply chain.”
With its Arla Foods Ingredients subsidiary, Arla Foods has built a global leader in value-added whey ingredients. From what was once a waste product from cheese production, Arla Foods Ingredients produces whey-based ingredients used for a wide range of products such as infant nutrition, baking, dairy, medical applications and sports nutrition.
Owned by 11,200 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands, Arla Foods is one of the strongest players in the international dairy arena, with well-known brands like Arla®, Lurpak® and Castello®. Arla Foods is also the world’s largest manufacturer of organic dairy products.
