Arla Foods Ingredients expands US production with Valley Queen partnership

Arla Foods Ingredients is increasing its US production capacity through a new contract manufacturing agreement with Valley Queen, a leading dairy processor based in South Dakota. The partnership will help meet the rising demand for high-protein dairy products in North America while strengthening Arla’s position in the whey protein market.

Boosting protein content without compromising taste

As part of the agreement, Valley Queen will produce ingredients from the Nutrilac® ProteinBoost range. This patented microparticulate whey protein concentrate enhances protein levels in dairy products while maintaining texture and taste. With high-protein dairy products becoming more popular among consumers and manufacturers, this collaboration will allow Arla to better serve market needs.

Valley Queen processes around three billion pounds (1.36bn kg) of milk annually and produces 330 million pounds (150M kg) of cheese. The company’s facility in Milbank, South Dakota, will begin producing Nutrilac® ProteinBoost in winter 2025/2026, following the installation of new processing equipment.

Meeting the demand for high-protein dairy in the US

Luis Cubel, group vice president and managing director of Arla Foods Ingredients, highlighted the importance of the partnership:

“Demand for protein-enriched dairy products continues to grow in the US. To meet this demand and support our expansion in North America, we needed to significantly increase production capacity for Nutrilac® ProteinBoost. It was also important to work with a partner that shares our values and commitment to high-quality dairy. Valley Queen was the perfect choice.”

Doug Wilke, CEO of Valley Queen, added:

“Like us, Arla Foods Ingredients is dedicated to producing high-quality dairy solutions that meet evolving consumer needs. Nutrilac® ProteinBoost is an innovative ingredient that allows manufacturers to create protein-rich dairy products with excellent taste and texture. We’re excited about this partnership and the opportunities it brings.”

Strengthening Arla’s presence in the whey protein market

The US whey protein market is growing as more consumers seek high-protein dairy drinks, yoghurts, and cheeses. This partnership enables Arla to expand its presence in the sector while continuing to innovate. By increasing local production, the company can serve American food manufacturers more efficiently, reducing reliance on imports and ensuring a stable supply of premium whey protein ingredients.

This collaboration marks another milestone in Arla’s global strategy, reinforcing its commitment to supporting dairy innovation and meeting the increasing demand for protein-rich foods.