Arla Foods Ingredients has signed an agreement with Valley Queen to meet the growing demand for “protein-enriched dairy” in the US.

Arla Foods Ingredients has signed an agreement with Valley Queen to meet the growing demand for “protein-enriched dairy” in the US.

The South Dakota-based dairy processor Valley Queen will produce ingredients from the Nutrilac ProteinBoost product range. The patented microparticulate whey protein concentrate increases protein levels in food and beverage products while retaining texture and taste.

Luis Cubel, group VP and managing director of Arla Foods Ingredients, says: “Demand for protein-enriched dairy products continues to grow in the US. In order to meet it and to fulfill our ambitious plans for growth in North America, it was essential for us to significantly increase our capacity for the production of Nutrilac ProteinBoost.”

Specialty equipment

Valley Queen is privately owned and has 440 employees. It specializes in high-quality dairy products, handling around 1.36 billion kilograms of milk annually and producing 150 million kilograms of cheese. After new specialty equipment has been installed, production of Nutrilac ProteinBoost is expected to begin at the company’s plant in Milbank, US, in the winter of 2025-2026.

Commenting on the deal, Doug Wilke, CEO of Valley Queen, says: “Like us, Arla Foods Ingredients is dedicated to meeting the needs of American manufacturers and consumers. Nutrilac ProteinBoost is a highly innovative ingredient which offers the perfect way to create appealing dairy products enriched with high-quality protein.”

Last month, Arla Foods announced plans to invest €107.7 million (US$112.7 million) in an ultra-high temperature (UHT) Centre of Excellence in Scotland to expand its milk production capabilities across the UK. 

The food giant also recently reported revenue of €13.8 billion (US$14.4 billion) and a net profit of €401 million (US$418.8 million) in its 2024 financial report, driven by improved consumer purchasing power across Europe.