Fonterra has announced plans for a new yoghurt plant to meet growing local demand in Brazil.
The plans were announced by Dairy Partners America (DPA), a five-year-old joint venture between Fonterra and Nestle.
The new plant, to be built at Nestle's Feria de Santa site in the State of Bahia, will allow DPA to develop products tailored to the tastes of consumers in the northeast Brazilian region, which has a population of around 50 million and represents approximately 20 percent ($NZ505.45 million a year) of the total Brazilian chilled dairy market.
DPA chief executive Juan Carlos Pestana said the investment would help tap the growing appetite for fresh and cultured products and enhance DPA's leading position in Brazil.
Fonterra and Nestle are 50/50 partners in the joint venture, which operates 13 manufacturing sites across Brazil, Argentina, Venezuela, Colombia and Ecuador.