The deal with Valley Queen was agreed as part of an wider effort by Arla Foods Ingredients to strengthen its ability to meet the demand for protein-enriched dairy in the US.
The South Dakota-based dairy processor will produce ingredients from the Nutrilac ProteinBoost product range for Arla Foods Ingredients moving forward, providing a “significantly increase” in capacity.
The patented microparticulate whey protein concentrate is used to increase protein levels in food and beverage products while allowing them to retain their texture and taste.
Production of Nutrilac ProteinBoost is expected to begin at the company’s plant in Milbank, South Dakota, from the end of this year after new specialty equipment has been installed.
Headquartered in Denmark, Arla Foods Ingredients is a 100% owned subsidiary of Arla Foods that operates extensively in the UK.
In November 2024, the firm had its acquisition of Volac Whey Nutrition Holdings and its site in Wales approved by the Competition and Markets Authority following an investigation.
‘Ambitious plans for growth in North America’
“Demand for protein-enriched dairy products continues to grow in the US,” said Luis Cubel, group vice president and managing director of Arla Foods Ingredients.
“In order to meet it, and to fulfil our ambitious plans for growth in North America, it was essential for us to significantly increase our capacity for the production of Nutrilac ProteinBoost. At the same time, it was important for us to choose a partner with the right values, history and expertise. We’re delighted to work with Valley Queen, a company with a long heritage which shares our commitment to producing dairy and whey products of the highest quality.”
Meanwhile, CEO at Valley Queen Doug Wilke said that Arla Foods Ingredients shared his own firm’s dedication to meeting the needs of manufacturers and consumers in the US.
“Nutrilac ProteinBoost is a highly innovative ingredient, which offers the perfect way to create appealing dairy products enriched with high-quality protein,” added Wilke.
“We’re excited to move ahead with its production, and we’re looking forward to a long and productive partnership with a global leader in the whey nutrition space.”
