French dairy giant Lactalis is set to enhance its operations in Brazil's state of Minas Gerais with a 250m reais ($41.7m) factory investment.
Lactalis' investment programme is geared toward “modernising, expanding and optimising” its seven industrial units in the state, according to a local government statement forward to Just Food by the privately-owned company.
The funds will be allocated through 2026, bringing Lactalis' total investments in Minas Gerais since 2020 to 736m reais.
Lactalis operates factories in Antônio Carlos, Guanhães, Pará de Minas, Pouso Alto, Sabará, Sete Lagoas, and Uberlândia.
Additionally, it manages logistics units in Contagem and an administrative office in Belo Horizonte.
The company currently provides 3,654 direct jobs in the state, with plans to increase the number from 2025.
Lactalis sources nearly all its milk from the Central Cooperative of Rural Producers through a long-term agreement.
The partnership “stimulates” local milk production, “strengthening local producers” there by supporting productivity and quality, the government statement read.
Lactalis is also negotiating a new “protocol of intent” to formalise investments and adjust tax treatments in the state.
Lactalis' investments in Minas Gerais are supported by the state government, through Sede-MG and Invest Minas.
Invest Minas CEO João Paulo Braga said: "Since 2020, the group has driven the modernisation of its units, consolidating the state as a hub in dairy production.
“This new investment reinforces the industrial capacity of Minas, while promoting technological innovation and sustainability in the sector.”
In March, Lactalis announced a 100m reais investment for its units in another Brazil state, Rio Grande do Sul, across its five factories in Teutônia, Tapera, Três de Maio, Santa Rosa, and Ijuí.
Since 2015, the company has invested 452m reais in expanding its industrial operations in Rio Grande do Sul.
Founded in 1933 and headquartered in Laval, France, Lactalis' product range includes brands such as Batavo, Président and Elegê.
Earlier this month, the company said it is increasing production of feta cheese in the US to meet the surge in consumer demand.
