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Arla Foods is eyeing growing demand in Argentina for low-fat cheeses with plans to step up investment at its production facility in the country.

The Denmark-based dairy giant is planning to spend US$10m to boost production of ingredients for reduced-fat cheese at the site in Porteña.

The investment comes a year after Arla earmarked initial spending of $20m at the site.

An Arla spokesman said the company is looking to supply the more profitable ingredients for low-fat cheese and ingredients for ice cream at the factory.

“We believe that, by making that investment and being able to produce these ingredients, we will become a significant player in that segment,” the spokesman told just-food.

Arla’s business in Argentina is predominantly business-to-business, the spokesman added.