Danish dairy co-op, Arla Foods is investing €110 million (US$125 million) into its site in Pronsfeld, Germany near the borders of Belgium and Luxembourg. The investment, which will also finance the construction of a milk drying tower and a creamery, will increase capacity at the facility from its current 1.4 billion liters per year by an additional 450 million liters. Production of butter will increase by 40,000 tons per year for consumption in German and other central European markets, and production of milk powder will increase by 42,000 tons per year for export to emerging markets in Asia and Africa. For the 2013/14 year which ended March 31, 2014, Germany produced more milk than any other EU member state, at more than 30 million tons, and production is expected to increase further after the elimination of EU milk quotas in April of this year. Arla predicts that its farmer-owners will produce a minimum of an additional 1 billion liters of milk annually, and is investing in processing capabilities in order to keep pace.
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