Press release

​Arla to invest 12 million euro in high-quality infant milk formula production

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Arla aims to be among the world’s leading dairy companies within the child nutrition category. In order to strengthen its infant milk formula production and continually set new quality standards in the category, Arla is now investing 12 million euro in an upgrade of its AKAFA site in Northern Denmark.

Arla has decided to invest approx. 12 million euro in an upgrade of its AKAFA production site in Northern Denmark, which will allow it to add Infant Milk Formula (IMF) production to its existing powdered milk capacity. The investment will not require an expansion of the site, but consists of an upgrade of relevant sections of the site to produce high-quality IMF.

Arla sells high-quality IMF products under its own brands like Arla Baby & Me® and Milex® and is also a preferred supplier to a number of third party brands. The biggest markets for Arla within the IMF category is China and Southeast Asia, Latin America and Europe.

“We are seeing double-digit growth in our global IMF sales, and we expect the growth to continue in the coming years due to rising demand in the category worldwide. By upgrading AKAFA to include IMF production, Arla will be able to meet the growing demand with high-quality production. Having a strong capacity with the highest quality is essential in a category like IMF, where quality is the key differentiator in the market,” says Group Vice President Henrik Andersen, who is head of Arla Foods Ingredients and responsible for Arla’s third party manufacturing (TPM) business.

Today approx. 80 per cent of the production at AKAFA is powdered milk for family nutrition, and 20 per cent is sterilised cream. The site’s products are sold in markets within Latin America, Africa, Middle East and Asia.

The new IMF production at AKAFA is expected to start in August 2018, and will create two to four new jobs at AKAFA. The investment was approved by Arla Foods’ board of directors this week.

Arla Foods is an international dairy company owned by 12.000 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 a wide range of dairy products of highest quality. Well-known brands like Arla®Lurpak® and Castello® belong to the Arla family. Arla Foods is also the world's largest manufacturer of organic dairy products.

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