Arla Foods Ingredients partners with Valley Queen to boost US protein-enriched dairy production

Arla Foods Ingredients has entered a contract manufacturing agreement with Valley Queen, a South Dakota-based dairy processor, to significantly increase its production capacity for protein-enriched dairy ingredients in the US.

This partnership aims to meet the growing demand for high-protein dairy products in the US market. Valley Queen will produce ingredients from Arla Foods Ingredients’ Nutrilac ProteinBoost product range.

The patented microparticulate whey protein concentrate boosts protein levels in food and beverage products while maintaining the desired product texture and taste.

“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,” says Luis Cubel, group VP and managing director of Arla Foods Ingredients.

“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.”

Winter production on schedule

Valley Queen, a privately owned company with 440 employees, processes approximately three billion pounds (1.36 billion kg) of milk annually and produces 330 million pounds (150 million kg) of cheese.

Production of Nutrilac ProteinBoost is scheduled to commence at Valley Queen’s Milbank, SD, facility in winter 2025/2026, following the installation of specialized equipment.

Valley Queen CEO Doug Wilke comments: “Nutrilac ProteinBoost is a highly innovative ingredient, which offers the perfect way to create appealing dairy products enriched with high-quality protein. 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.”

In other recent activities, Arla Foods Ingredients launched a toolbox to help South American food brands create indulgent, high-protein desserts. The company highlights Latin America accounted for 10% of global dessert launches in 2024, with retail sales reaching US$12.7 billion. In Brazil, the region’s largest market, value growth in the sector is rising by 9% CAGR.