Dairy Dimension | March 30, 2025: French dairy heavyweight Lactalis has announced a major investment of R$285 million (€46 million) to expand its operations in the southern Brazilian state of Paraná. The move is a clear signal of the company’s long-term commitment to Latin America’s fast-growing dairy sector and a reaffirmation of Paraná’s strategic role in Lactalis’ South American playbook.
The expansion will focus on two of Lactalis’ existing facilities in the region—Carambeí and Londrina. At the heart of the investment is an upgrade of production lines for high-growth dairy segments, including yoghurt, milk pudding, fermented dairy drinks, cream cheese, and desserts. The Carambeí plant, which also functions as a major distribution and logistics hub for refrigerated products, will lead this next chapter of development.
Paraná has long been a dairy-rich state, producing over 4 billion litres of milk annually. Its cooperative model and infrastructure have made it a magnet for investment. Lactalis, which entered the state in 2015 through its acquisition of the historic Batavo brand, now collects 600 million litres of milk annually in the region. The company has partnered closely with local cooperatives such as Castrolanda and Cativa, building a robust milk procurement ecosystem.
This latest round of investment brings Lactalis’ total spend in Paraná to R$682 million (€109 million) over the past decade. Between 2015 and 2024, the company had already committed R$397 million to expand capacity and improve logistics. The goal now is to push milk collection volumes to 1 billion litres annually within the next four years—a significant jump that reflects growing demand and operational confidence.
Yoghurt, in particular, is a booming category in Brazil, and Lactalis is well-positioned to capitalize. Under the Batavo label, it has emerged as the second most popular yoghurt brand in the country, with a consistent 10% annual growth rate. The company’s strength lies in its ability to localize production while leveraging its global expertise in product development and dairy science.
Across Brazil, Lactalis operates 23 factories and employs over 13,000 people. Its portfolio includes household names such as Parmalat, Président, Itambé, Elegê, and Batavo—each catering to different market segments across dairy staples and premium offerings. With its wide-reaching network of dairy farmers, the group has become Brazil’s largest milk collector, sourcing 2.7 billion litres of milk annually.
What makes this story particularly relevant for Indian stakeholders is the blueprint it offers. Brazil and India are both vast, milk-rich nations with strong cooperative legacies. Yet, Brazil’s dairy evolution—especially in value-added categories like yoghurt, fermented drinks, and dairy desserts—has moved faster. Lactalis’ example highlights the importance of regional specialization, cooperative alignment, and consistent long-term investment.
For India, which is now among the world’s largest yoghurt markets, the time is ripe to move beyond commoditized dahi or lassi. There’s an urgent need to diversify portfolios, deepen cold-chain infrastructure, and invest in consumer-oriented product innovation. Indian private dairies and cooperatives alike can look to Lactalis’ strategy in Paraná as a working model of how to scale quality, efficiency, and brand strength—while partnering with rural communities for sustained milk supply.
As Lactalis sharpens its focus on Latin America, its Brazilian chapter is a masterclass in thoughtful expansion. With its deepening roots in Paraná, the company is not only increasing its production muscle but also solidifying its position as a future-ready leader in value-added dairy.