Arla Foods is seeking to double exports of European dairy products to its strategic growth markets outside the EU including, Russia, China, the Middle East & Africa with a major investment to boost its production capabilities.
As part of the plan, the co-operative is set to invest DKK2.2bn in ten of its dairy plants this year.
Recently, the board approved the investment, which will be used for new and ongoing dairy expansions and into projects that will help make Arla's production even more climate-friendly.
Arla Foods vice-CEO Povl Krogsgaard said, "This year we are increasing our investments to dairy sites that contribute to our export out of Europe.
"Our sales on the growth markets outside the EU are growing at a fast pace, and we must prepare ourselves to meet the rapidly growing demand in years to come."
In total, DKK750m will be invested in production, representing around 3% of Arla's DKK79bn expected turnover.
This year's largest investment is DKK530m to construct a lactose production site near Nr. Vium in Denmark.
Krogsgaard commented, "The new lactose site is a very important investment for us. One of our most profitable business areas is whey-based ingredients for the global food industry, and that business must be doubled by 2017."
Arla's climate strategy is aimed at reducing the company's overall CO2 emission by 25% by 2020. Investments in environmental improvements would reduce the group's overall energy consumption in production by 2.3% in 2014.
