There's a good chance the yogurt in your fridge was made on 24th Avenue North in Lethbridge and the milk carton beside it came from Calgary.
Lactalis Canada operates two Alberta facilities that together cover a significant share of what western Canadians pull from the dairy aisle. The Lethbridge plant at 3410 24 Ave N produces yogurt, cottage cheese, and sour cream. The Calgary facility produces fresh and flavoured milk. Both run under brands most Albertans already know IÖGO, Beatrice, Cracker Barrel, Black Diamond. The Government of Alberta just approved a $1.7 million tax credit to expand and modernize both.
What each plant does
The division of labour between the two facilities reflects how dairy processing actually works. Raw milk from Alberta farms arrives at processors and gets split depending on what it's being made into.
Calgary handles fluid dairy fresh milk and flavoured milk products. These are shorter shelf-life products that require fast processing and distribution close to major population centres. Calgary's location and infrastructure make it the natural fit.
Lethbridge handles cultured dairy products where milk is fermented or processed into a thicker, longer shelf-life form. Yogurt, cottage cheese, and sour cream all fall into this category. The Lethbridge plant has 29 unionized workers represented by Teamsters Local 987, whose collective agreement expires April 30, 2026.
The $1.7 million credit funds new processing capacity, food safety upgrades, and automation across both locations.
What it means for Alberta dairy farmers
Alberta's dairy sector operates under supply management farmers produce under quota and depend on reliable local processing. More capacity at both plants means more Alberta milk gets processed inside the province rather than routed to facilities in Ontario or Quebec.
Every Lactalis product carrying the Dairy Farmers of Canada Blue Cow logo Beatrice, IÖGO, Black Diamond, Cracker Barrel is made with 100% Canadian milk. That supply starts on farms across southern and central Alberta before it reaches the Calgary and Lethbridge floors.
Lactalis Canada purchases milk equivalent to the production of more than 2,000 average-size Canadian dairy farms across British Columbia, Alberta, Manitoba, Ontario, and Quebec. Both Alberta plants are part of that supply chain.
Alberta's dairy processing infrastructure is expanding on multiple fronts
The Lactalis expansion didn't happen in isolation. On October 3, 2025, Canada's first milk concentration plant opened near Blackfalds a $73.7 million facility operated by Dairy Innovation West, a partnership of western Canadian dairy boards including Alberta Milk. The plant uses reverse osmosis and ultrafiltration to concentrate raw milk before shipping it to processors for final production.
"DIW never owns the milk that passes through it, and it's not permitted to buy or sell milk or dairy products," Alberta Milk general manager Reuben Joosse told producers at the organization's fall meeting in Lethbridge. The plant handles up to 300 million litres of milk annually and is expected to reach full capacity within two years.
The efficiency gain is significant. For every three or four truckloads of raw milk entering the Blackfalds facility, one truck of concentrate leaves for a processor. That concentrated milk then moves to plants like Lactalis in Lethbridge and Calgary for final production. Less transportation, lower costs, reduced emissions and more Alberta milk staying in an Alberta supply chain from farm to shelf.
Lactalis Canada the company behind the brands
Lactalis Canada is the Canadian arm of Lactalis Group, the world's largest dairy company, headquartered in Laval, France. It runs more than 30 sites across Canada, employs over 4,000 Canadians, and has more than 140 years of brand heritage in the country. Its Alberta plants are two of roughly 19 manufacturing facilities in its Canadian network.
The company's brand portfolio covers a wide range of the dairy aisle fluid milk under Beatrice and Lactantia, yogurt under IÖGO and Astro, cheese under Black Diamond and Cracker Barrel, and cultured dairy under several other labels. Products made in Lethbridge and Calgary reach grocery stores nationally.
The broader program
The Agri-Processing Investment Tax Credit offers a 12% non-refundable credit to food manufacturers investing $10 million or more in Alberta agri-processing facilities. Since launching through Budget 2023, 22 applications have come in covering $1.85 billion in proposed new investment. So far 17 projects have been approved including the Blackfalds milk concentration plant, Saputo in August 2025, and now Lactalis across both its Alberta locations.
Sources:
Government of Alberta news release — Tax credit for legend-dairy investment, May 26, 2026 (alberta.ca)
Government of Alberta — Collective Agreement Wage Tables, Manufacturing, April 2025 (open.alberta.ca)
Lactalis Canada — About Us and Our Commitment & Impact (lactalis.ca)
Alberta Farmer Express / Western Producer — Dairy Innovation West milk concentration plant opens near Blackfalds, October 2025
Alberta Major Projects Registry — Dairy Innovation West Facility (majorprojects.alberta.ca)
