Carbery Group, BRF Brasil Foods Plan Expansion In Brazil

Ireland-based Carbery Group has teamed up with food and beverage company BRF Brasil Foods to form a 50:50 joint venture to expand operations in Brazil.

The two partners plan to invest $50m to deploy Carbery's technology to process whey generated at BRF Brasil's cheese-making units.

It also involves setting up of a manufacturing facility to produce added value nutritional ingredients sourced from whey. Construction work is expected to begin by end 2012 with completion scheduled for 2014.

Carbery Group CEO Dan MacSweeney said that the JV will enable the company expand its footprint in the vast South American agrifood business.

"Furthermore, by growing Carbery's presence in emerging markets like this, we are adding value to our core business in Ballineen, Ireland, and our other international facilities, in a steady and planned way, while demonstrating an ability to compete and succeed in world markets, using world-class process technology," he added.

Carbery develops dairy-based nutritional ingredients for use in baby food, sports and performance nutrition products, together with foods such as yogurts and bakery products. With a turnover of €257m in 2011, the company employs over 500 people globally.

BRF Brasil's product portfolio includes cheese, UHT milks and fresh dairy products under the Batavo and Elege brands. It processes more than 1.6 billion liters of milk every year across its 14 dairy processing sites in Brazil and another in Argentina.