Lactalis Pours Investment into Brazil to Enhance Cheese and Butter Production
Lactalis, the French dairy conglomerate, is set to enhance its production capabilities in Brazil with substantial investments aimed at boosting cheese and butter production in the state of Minas Gerais. The company has allocated €46.2 million ($50 million) specifically for its facility in Uberlândia, Minas Gerais. This is part of a broader strategic initiative by Lactalis to expand operations in Brazil, a country that has become a focal point for its growth strategy.
The investment will see the introduction of a new manufacturing facility dedicated to producing the local semi-hard cheese variety known as 'prato'. This facility is expected to reach a production capacity of 12,000 tonnes per year. Additionally, the company plans to add an extra production line for butter, projected to increase output by 3,600 tonnes annually, reaching a total capacity of 10,000 tonnes by 2027.
This new initiative is a continuation of Lactalis’ investment strategy in Brazil, having earmarked $42 million last November for expanding operations across seven plants in Minas Gerais—a project that will extend until 2026. Besides Minas Gerais, the company is also making significant investments in Paraná, totalling 313 million reais ($54.7 million) to support new production lines and expand existing facilities.
Despite global challenges, Lactalis has maintained its investment focus. In 2023, the company reported a 4.3% increase in turnover, reaching €29.5 billion, with cheese being the largest contributor at 39% of turnover. Lactalis continues to adapt to changing consumer behaviors and market dynamics, including a growing preference for private-label products, which has impacted sales volumes, particularly in Europe.
The strategic expansions in Brazil are part of Lactalis' efforts to reinforce its market position in Latin America, capitalizing on the region's growing dairy demand and its logistical proximity to major global markets.
