US-based Aurora Organic Dairy’s Russian division Moloko has signed an agreement with government of the Russian region of Ulyanovsk to set up the country’s first organic dairy farm and processing facility.
Around RUB6bn ($192m) will be invested on the construction of the facility.
The farm is expected to hold 5,000 cows and produce 150 tons of milk products per day.
Slated to be operational by mid-2015, the plant will manufacture organic milk and butter.
Moloko plans to target the dairy products manufactured at the plant at children and mothers who are in need of organic products.
Organic milk is milk produced by cows that eat only organic food.