Solarec plans ambitous cheese expansion

Dairy company Solarec, mostly owned by cooperative Laiterie des Ardennes (LDA), wants to produce up to three times more cheese than it currently does at the factory in Badour. A strong capacity expansion is planned for this, including the search for more milk and collaboration with more partners. According to a statement from the company, the plan is to set up an additional capacity of 50,000 to 60,000 tons. The current factory in Baudour currently produces about 30,000 tons of mozzarella per year. The costs have not been disclosed yet. Solarec currently processes 1.6 billion liters of milk annually, which is converted into approximately 100,000 tons of milk powder, 50,000 tons of butter, 180 million liters of UHT milk, and thus 30,000 tons of mozzarella. The expansion plan is ambitious, as CEO Louis Ska acknowledges, because the company only started producing mozzarella in Baudour in 2021. However, diversifying the production to cheese has brought a lot to the company, and during the strategy discussion one year ago, it was determined that Solarec should further diversify, be less dependent on butter and powder, and produce more cheese. Producing more cheese does not only mean making more mozzarella. Solarec also wants to be able to produce other semi-hard cheeses. All to generate more added value for the members. Extra milk is needed for the production expansion. Some of it can come from their own farmers. Solarec is 90% owned by Laiterie des Ardennes, but also partially by Laitnaa, Avesnois-Lait, and Luxlait. Their farmers can supply more milk. Part of the existing milk flow will also be converted because Solarec has decided to close one dryer. The milk used for that will go to the new cheese factory. The plan is to start the capacity expansion next year. The construction is expected to be completed by the end of 2027 or the beginning of 2028. Although the current partners in Solarec support the expansion plan, discussions are being held with more partners to help realize the plans. The preference is to collaborate with other cooperatives, because that works the easiest, as we have the same DNA and mission, says Ska. but we do not exclude private companies. The valorization of the additional whey, which will be released with the expansion of the cheese capacity, is another point of attention. Solarec also wants to handle this in-house, but will likely initially choose to market this product in liquid form.