Lactalis to Invest $55 Million in Dairy Production Expansion in Brazil

Lactalis is investing $55.3 million in expanding its dairy production facilities in Paraná, Brazil, celebrating ten years of operations. The investment will enhance UHT milk production and yogurt output. Formalized agreements with the local government were established, with Lactalis having previously invested over 710 million reais in the region. The company is also pursuing expansions in Minas Gerais and Rio Grande do Sul while targeting acquisitions in Uruguay.

Lactalis, the France-based dairy leader, announced a significant investment of 313 million reais (approximately $55.3 million) to enhance its dairy production capabilities in the Paraná state of Brazil. This initiative aligns with the company’s celebration of a decade of operations in Brazil and emphasizes its commitment to responsible leadership within the country’s milk sector.

The investment will specifically finance a new UHT milk production line at the Londrina facility and expand operations at the Carambeí plant, which will increase output of various dairy products including yogurts, fermented milk, and desserts. This expansion agreement was formalized in a ceremony in Curitiba, attended by Governor Ratinho Júnior and Lactalis’ CEO in Brazil, Roosevelt Junior.

Over the last ten years, Lactalis has invested over 710 million reais in Paraná. The company operates three facilities in the state: Carambeí, which employs 830 workers; Londrina with 280 employees; and Pato Branco with 36 workers. Just Food has reached out to Lactalis to inquire about potential job creation resulting from this latest investment and the strategic reasoning behind it.

This recent funding follows a previously announced investment of 250 million reais in November for modernizing and expanding seven factories in Minas Gerais, in addition to their logistics units in Contagem and an administrative office in Belo Horizonte, which collectively employ 3,654 people.

Further expanding its reach, Lactalis also declared a 100 million reais investment in March for five plants located in Rio Grande do Sul. The company, founded in 1933, encompasses popular brands such as Batavo, Président, and Elegê, and is actively pursuing growth opportunities throughout South America, including a planned acquisition of Uruguay-based Granja Pocha, known for its cheese and yogurt products.

In conclusion, Lactalis’ commitment to investing 313 million reais in its Brazilian operations highlights its strategic efforts to strengthen its presence in the South American dairy market. This investment not only validates its decade-long engagement in Brazil but also aims to enhance production capabilities across various dairy products. Lactalis continues to expand its operations and workforce in Brazil while exploring further opportunities in South America.

Original Source: www.just-food.com