Arla Foods Ingredients Expands US Production with Valley Queen Partnership

Mar 4, 2025 at 10:33 AM
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Arla Foods Ingredients has forged a strategic contract manufacturing partnership with Valley Queen to enhance its production capabilities in the United States. This collaboration aims to address the increasing demand for protein-enriched dairy products. Situated in South Dakota, Valley Queen will be responsible for producing ingredients from Arla's Nutrilac ProteinBoost range. This patented microparticulate whey protein concentrate is designed to elevate protein levels in food and beverages without compromising texture or taste. The move underscores Arla’s commitment to expanding its presence in North America and meeting market demands for high-quality protein products.

As consumer interest in protein-enriched dairy continues to rise in the US, Arla Foods Ingredients recognizes the need to bolster its production capacity. Luis Cubel, Group Vice President and Managing Director of Arla Food Ingredients, emphasized the importance of this partnership: "The growing appetite for protein-enriched products in the US necessitates a significant expansion of our production capabilities. By aligning with Valley Queen, we are not only increasing our capacity but also ensuring that our products meet the highest standards of quality."

The decision to partner with Valley Queen was driven by more than just production needs. The company's long-standing heritage and dedication to excellence in dairy production were crucial factors. Valley Queen, known for its specialized dairy manufacturing, employs around 440 individuals and annually produces over 330 million pounds of cheese while processing approximately 1.36 billion kilograms of milk. This extensive experience makes Valley Queen an ideal collaborator for Arla Foods Ingredients.

Doug Wilke, CEO of Valley Queen, expressed enthusiasm about the partnership: "We share Arla Foods Ingredients' commitment to delivering high-quality dairy solutions. The innovative Nutrilac ProteinBoost ingredient offers a unique opportunity to create appealing, protein-rich products that cater to American manufacturers and consumers. We look forward to initiating production and embarking on a productive journey with a global leader in whey nutrition."

With the installation of new equipment, Valley Queen's Milbank, SD plant is scheduled to commence production of Nutrilac ProteinBoost by winter 2025. This strategic alliance marks a significant milestone for both companies as they aim to capitalize on the growing market for protein-enriched dairy products. The partnership promises to bring advanced, high-protein ingredients to the forefront of the US dairy industry, benefiting manufacturers and consumers alike.