FDBusiness.com

Arla Foods is constructing a new hydrolysates factory in Jutland, Denmark, which is scheduled to be complete by October 2015 and operational towards the end of 2016. Hydrolysate is an important ingredient in products for infants with allergy and products designed for sports and clinical nutrition purposes.

The manufacturing plant is to be built next to Arla Foods Ingredients’ existing whey protein facility in Videbæk, where Arla Foods Ingredients is also in the process of building a new lactose plant.

The new factory triples Arla Foods Ingredients’ capacity to produce whey protein hydrolysates. This expansion is part of the strategic initiatives to accelerate growth in Arla Foods Ingredients and prepare Arla Foods for a future increase in raw milk intake from its owner farmers.

Henrik Andersen, CEO of Arla Foods Ingredients, says: “When we speak with our customers they make it clear that whey protein hydrolysates are a very big part of their future plans and they are keen to work with companies who can guarantee ongoing security of supply. The investment in this factory sends out a very strong signal that Arla Foods Ingredients will continue to be at the vanguard of the hydrolysates sector and that we will be able to satisfy demand while adhering to the very strictest quality and safety standards.”

He adds: “Our new hydrolysates factory in Jutland will ensure we can maintain our position as the world’s leading supplier of high quality whey protein ingredients and thereby make a strong contribution to the Arla group and its owners, the milk farmers.”

The investment in the new plant has been approved by Arla Foods’ Board of Directors who also approved a related investment of €6 (DKr45 million) at Arla Foods’ factory HOCO in Holstebro, where some of Arla’s whey protein hydrolysates are currently manufactured. This production will be moved to Videbæk in 2015-2016 to make room for further value-adding processing of milk. With the investment Arla will increase the production of milk calcium at HOCO. The global demand for milk calcium as an ingredient is also increasing.

“In Arla Foods everything we do is about adding value on the raw milk from our farmer owners. By investing in production for milk calcium and hydrolysates we strengthening our ability to do that, and to fully harvest the potential that is naturally inherent in milk,” says Henrik Andersen.