Europe – French dairy giant, Lactalis has invested US$2.6 million to establish a new processing facility in Bosnia and Herzegovina.

According to the company, the move will allow Lactalis to increase the production of its Dukat and Alpsko Mleko brands.

“The facility, which spans 788sqm, is expected to increase the company’s milk production capacity by 16%,” Lactalis said in a press release.

Lactalis, which has been present in Bosnia and Herzegovina since 2007 after buying dairy group Inmer, is lining up more investment at the site next year.

“In addition, as part of our plans, we intend to invest additional 1.3 million euro in the facility in 2024 to boost its yoghurt production capacity.”

Lactalis BH processes over 45 million litres of milk per year with half of the finished products made by the subsidiary exported to other countries in the world.

The company manufactures dairy products under several brands, including Dukat, President, Galbani, Alpsko Mleko, Domace Blago and Dar Prirode.

US growth gathers momentum

In recent years, the French-based dairy giant has been growing its business within the U.S. where it currently operates 11 production facilities and six corporate offices.

Earlier this year, Lactalis, announced its plans to expand in Chicago, USA, after a previous US$3.2 billion deal made in 2020 with Kraft Heinz Co. to acquire their cheese brands.

The expansion came as Lactalis prepares to separate its supply chain and finance systems as part of the integration of Kraft brands including Cracker Barrel and Knudsen.

In April, the dairy giant revealed its plans to invest US$32m in expanding its Buffalo facility in New York to boost its whey production.

The dairy group said the investment covered setting up a new evaporator and powerhouse to expand the facility to have a 30% boost in whey production.

Investment in whey will help Lactalis tap the US whey protein market which is expected to grow at a CAGR of 7.28% to reach US$829.71 million in 2025, according to projections from Techavio.

Lactalis recently offloaded a small cheese factory in Argentina. The plant was serving the B2B market. Neither the financial details of the deal nor the buyer was disclosed.

Earlier this year, another cheese giant, Saputo built a new cut-and-wrap cheese facility and closed three dairy plants in the US in attempts to “streamline” operations.

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