Lactalis is set to invest a total of €160 million ($172 million) in its Italian operations over the next two years, with the anticipated completion of the funding by the end of 2024.
After injecting more than €248 million into Italy within the past five years, the French dairy giant has designated the European country as a “strategic nation.”
An official statement from the group mentioned that approximately 88% of the investment package is allocated for enhancing, maintaining, and modernizing its facilities in Italy.
In Italy, Lactalis operates 31 facilities and markets brands such as Galbani, Parmalat, Ambrosi, and Leerdammer.
Recently, the group made a substantial investment of over €26 million in acquiring new offices at Largo Tazio Nuvolari in Milan to serve as its new headquarters. These offices will accommodate more than 350 employees currently stationed in Milan.
For the year 2023, Lactalis has already injected €64 million into Italy, and it plans to further invest an additional €70 million in 2024. This funding is designated for Research and Development, logistics, supply chain activities, and the “maintenance and modernization of the factories.”
The statement indicated that recent investments have spanned diverse areas, encompassing food safety, safeguarding employee health, mitigating environmental impacts from production, streamlining operational complexity, and augmenting production capacity.
Giovanni Pomella, CEO of Lactalis’ business in Italy, said, “In an increasingly dynamic economic context, it is essential to invest in the development of the dairy supply chain to ensure its competitiveness.
“As a leader in the sector, we have the responsibility not only to continue to invest, but also to network and identify paths shared by the various players in the sector, which can support Italian dairy products at home, through an increasing focus on sustainability, and abroad, through the enhancement of our local specialties.”
The group has reported a 17% increase in global investment in 2022 compared to the previous year, amounting to €750 million. This funding is directed towards the modernization of production sites and the reduction of the company’s carbon footprint.
In 2022, Lactalis recorded €14.5 billion in revenue from Europe, constituting more than half of the total revenue for the dairy conglomerate.
Earlier this year, the French conglomerate faced allegations of engaging in “unfair” trading practices in milk procurement, as asserted by Italy’s primary farmers’ association, Coldiretti.
Allegations of violation, supported by Coldiretti president Ettore Prandini, involved Lactalis purportedly reducing contracted milk prices to the disadvantage of farmers.