Arla Foods, a leading global dairy cooperative, has partnered with South Dakota-based Valley Queen to manufacture whey protein in the U.S. The move aligns with Arla’s strategy to expand its footprint in North America, addressing the growing demand for protein-enriched dairy products. Production will commence this winter at Valley Queen’s Milbank facility, reinforcing Arla’s position in the ingredients market amid rising milk prices.
Danish dairy giant Arla Foods has announced a strategic partnership with Valley Queen, a South Dakota-based dairy processor, to manufacture whey protein for the North American market. This collaboration is part of Arla’s broader expansion plan to meet the rising demand for protein-enriched dairy products in the United States.
Arla Foods, one of the world’s largest dairy cooperatives, operates in over 100 countries and specializes in dairy ingredients for the food and beverage industry. Through this partnership, Valley Queen will produce Arla’s Nutrilac ProteinBoost, a whey protein concentrate designed to enhance protein content in food products without altering taste or texture.
Demand for protein-enriched dairy products continues to grow in the U.S., To meet our ambitious plans for growth in North America, it was essential for us to significantly increase our capacity.”
Luis Cubel, group vice president and managing director of Arla Foods Ingredients.
Production is set to begin this winter at Valley Queen’s Milbank facility after the installation of specialized equipment. The company, which employs approximately 440 people, processes around three billion pounds of milk annually.
The move comes as Arla strengthens its position in the dairy ingredients sector, particularly in light of expected market pressures from rising milk prices in 2025. The company reported a strong financial performance in 2024, with its ingredients segment seeing a 5.4% revenue increase driven by demand for whey-based ingredients.
By leveraging Valley Queen’s expertise and infrastructure, Arla Foods aims to enhance its production capabilities in North America while reinforcing its global presence in the dairy protein market.
