Brazilian food company BRF Brasil Foods and Irish ingredients firm Carbery have formed a 50/50 whey processing joint venture in Brazil,with a proposed investment of$50m.
The new joint venture will use Carbery's technology to process whey produced at BRF's cheese manufacturing facilities.
The deal is expected to complement BRF's cheese division in Brazil,while allowing Carbery to expand its ingredients business in South America.
As a part of the joint venture,the companies will set up a manufacturing plant that will utilise whey to produce nutritional ingredients,which will be used by consumer brands in baby food,sports nutrition,and other segments.
The construction of the facility is scheduled to be begin immediately and it will be commissioned in 2014.
BRF has 14 dairy plants in Brazil and one in Argentina,which process over 1.6 billion litres of milk per year.The company's dairy product range includes cheese,UHT milks and fresh dairy products,which are sold under Batavo and Elege brands.
Carbery,headquartered in Cork,Ireland,manufactures ingredients,flavours and cheese for food and drink companies.
