SINGAPORE - Olam International's wholly-owned subsidiary New Zealand Farming Systems Uruguay will be investing US$80 million (S$100 million) to establish a new dairy processing facility in Uruguay.
The project will enable Olam to fully integrate its dairy supply chain and realise the full potential of NZFSU's dairy farming operation by leveraging its global trading and distribution network.
The greenfield dairy processing facility will initially have a capacity to process 600,000 litres of milk per day, going up to one million litres - the level of milk production that NZFSU dairy farms are expected to reach at steady state.
Said Olam's managing director and global head for dairy, coffee and commodity financial Services Vivek Verma: "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."
It will produce a combination of dairy products, including whole milk powder, skim milk powder and butter, which will be exported to key markets where Olam currently supplies to, including China, Russia, Middle East, Eastern Europe and Africa, as well as neighbouring countries, such as Brazil, Paraguay and Venezuela.