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New Zealand Farming Systems to build $80m dairy processing facility in Uruguay

FBR Staff Writer Published 10 September 2014

New Zealand Farming Systems Uruguay (NZFSU), a subsidiary of agri-business company Olam International, will invest $80m to build a new dairy processing facility in the central region of Uruguay.


Of the total investment, around $5m will be used to buy 94% stake in BG Industria Láctea, in order to acquire the land, licenses and permits required for the construction of the plant.

The proposed facility will have a capacity to process 600,000 liters of milk everyday, with plans to increase the capacity to one million liters per day over the future.

The dairy processing plant is expected to become operational in 2017.

It will produce a combination of dairy products, including whole milk powder, skim milk powder and butter, which will be exported to key supplier markets of Olam, including China, Russia, Middle East, Eastern Europe and Africa, as well as Brazil, Paraguay and Venezuela.

Olam International Dairy, Coffee and Commodity Financial Services Global head and managing director Vivek Verma said: "The proposed dairy processing investment is part of our strategy for NZFSU to realise the full value of dairy farming.

"The processing plant will be uniquely positioned and differentiated with the control on milk supply through captive milk production and well-placed to meet our customers' call for high quality dairy products with complete traceability and stringent food safety standards."

Image: NZFSU's proposed facility will have a capacity to process 600,000 liters of milk everyday. Photo: courtesy of Naypong / FreeDigitalPhotos.net.