UK – Global dairy giant, Arla Foods, has unveiled plans to inject over US$378 million into its operations across the UK, aimed at enhancing dairy production and improving food security measures.
According to the company, the investment will be distributed across four key sites: Lockerbie, Stourton, Aylesbury, and Westbury, supplementing the previously announced US$225.54 million injection into the Taw Valley site.
This strategic move also solififies the company’s commitment to expanding opportunities for British milk and cheese production.
In Stourton, a significant portion of the funds will be allocated to bolster capabilities in extended shelf life (ESL) milk production, particularly focusing on popular brands such as Cravendale and BoB.
Additionally, plans include the introduction of capabilities to supply milk in cardboard cartons, aligning with evolving consumer preferences.
The substantial US$82.14 million investment in Stourton is projected to generate enough additional milk to fill the equivalent of 560 million cereal bowls, illustrating the scale of the expansion efforts.
Meanwhile, Lockerbie will receive a US$42.84 million infusion to upgrade technology and facilitate site expansion, positioning it for future growth.
Westbury is set to undergo a US$18.90 million upgrade, with enhancements to the effluent treatment plant and powder dryer improvements, as the business explores export opportunities.
Aylesbury, the UK’s largest fresh milk site, producing over 1 million bottles of milk daily, will benefit from an US$10.08 million investment to enhance automated box packing capabilities, ensuring greater packaging format flexibility.
Bas Padberg, Managing Director of Arla Foods UK, emphasized that these investments underscore the cooperative’s dedication to bolstering UK food security and supporting its farmer owners.
Padberg highlighted the importance of maintaining a robust food supply chain and ensuring fair returns for farmers, underlining the significance of continued investment in production sites.
Earlier this year, Arla made headlines with its plans to expand mozzarella production at the Taw Valley site, receiving €210 million (US$264.60 million) to cater to global demand for pizza toppings.
In line with its strategic vision, Arla is actively seeking growth opportunities while optimizing its portfolio.
This includes the recent announcement of plans to divest its cheese-making facility, the Melton Mowbray creamery, in a bid to streamline operations.
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