Arla Foods' Ice-cream in Argentina

25/04/08 Arla Foods is increasing its investment in Argentina. Last year, the Board of Directors decided to invest 20 million USD in the expansion of the factory in Porteña. This will now be increased by an additional 10 million USD to finance a new production of ingredients for ice-cream and cheese.

The Board has agreed to increase the investment in Argentina from the initial 20 million USD to 30 million USD. This not only takes account of added costs for machinery, buildings, and equipment for ice-cream and cheese ingredients, but also reflects rising steel prices and the low dollar rate.

The factory in Argentina produces added value whey protein powder sold as ingredients to the dairy and bakery industries. Current production, however, only utilises 30 pct. of the raw material. The rest will be used for less profitable permeate for animal feed. The investment in a new spray tower will provide for the appropriate technology to produce high quality whey permeate powder and strengthen earnings from the already profitable Argentinean business.