Dairy giant Arla Foods is to expand its US dairy in Wisconsin in a bid to boost sales.

Expansion of the Hollandtown-based facility is expected to be completed by early summer 2011, the firm said today (21 July).

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Around 70% of Arla’s products for the US are produced at Arla’s two US dairies in Michigan and Wisconsin, while 30% is imported from the firm’s dairies in Denmark.

Arla said the expansion will help it to keep pace with rising sales and cater to the US consumers’ growing interest in premium cheese.

“When the expansion is completed next year, we’ll be in a stronger position to compete for large contracts,” said Susie Møller Hjorth. “At the same time, Arla will be better placed to meet major customers’ demands for locally produced cheese and we’ll have the capacity to focus on product development and customer innovation.”

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Arla said its US sales have continued to rise, despite the economic downturn. Last year, sales in the US rose by 10%, and midway into 2010 the firm said its volumes are showing a 20% year-on-year increase.

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“More customers are requesting locally produced products and at the moment we are limited,” a spokesperson for Arla told just-food. “When we expand, it will open up new ground for us and allow us to approach larger chains.”

The spokesperson said Arla aims to build on the 16,000 tonnes of cheese it sells to American consumers per year.

“This is an expansion to increase capacity in order to increase volumes. It is hard to put a figure on our growth target in terms of sales but we are hoping for double-digit sales growth for the US market each year for the next five years,” the spokesperson added.