Arla says it aims to be among the world’s leading dairy companies within the child nutrition category, and is now investing €12 million in an upgrade of its AKAFA site.

Arla says it aims to be among the world’s leading dairy companies within the child nutrition category. In order to strengthen its infant milk formula (IMF) production and continually set new quality standards in the category, Arla is now investing €12 million in an upgrade of its AKAFA site in Northern Denmark.

The investment will not require an expansion of the site, but consists of an upgrade of relevant sections of the site to produce high-quality IMF.

Arla sells IMF products under its own brands like Arla Baby & Me and Milex and is also a supplier to a number of third party brands. The biggest markets for Arla within the IMF category are China and Southeast Asia, Latin America and Europe.

“We are seeing double-digit growth in our global IMF sales, and we expect the growth to continue in the coming years due to rising demand in the category worldwide,” said Group Vice President Henrik Andersen, who is head of Arla Foods Ingredients and responsible for Arla’s third party manufacturing (TPM) business. “By upgrading AKAFA to include IMF production, Arla will be able to meet the growing demand with high-quality production. Having a strong capacity with the highest quality is essential in a category like IMF, wher quality is the key differentiator in the market.”

Today approx. 80% of the production at AKAFA is powdered milk for family nutrition, and 20% is sterilised cream. The site’s products are sold in markets within Latin America, Africa, Middle East and Asia.