Carbery Group and BRF have announced the formation of a 50/50 whey processing joint venture. The $50 million investment will use Carbery’s innovative technology to process whey generated at BRF’s cheese manufacturing facilities. The venture is aligned with BRF´s strategic objective to be a leading player in the Brazilian cheese market.
BRF, which employs around 115,000 people and has an annual turnover of US$13.7 billion is the second largest collector of milk in Brazil. Together with significant pork and poultry operations, the company has fourteen dairy processing sites in Brazil together with one in Argentina and processes in excess of 1.6 billion litres of milk per annum. The company’s dairy product portfolio includes cheese, UHT milks and fresh dairy products marketed under the Batavo and Elege brands.
Dan MacSweeney CEO of Carbery Group, in welcoming the joint venture, said: ‘This joint venture with one of Brazil’s leading food companies further enhances our footprint in the vast agri-food business in South America. Carbery’s capability to produce high quality whey protein ingredients in the country will strengthen our offerings to the leading nutritional brands there, and ensure we are positioned for further growth in a dynamic and growing economic region’, Dan continued.
‘Furthermore, by growing our presence in emerging markets like this, Carbery is adding value to its core business in Ballineen, Ireland, and our other international facilities, in a steady and planned way, while demonstrating our ability to compete and succeed in world markets, using world-class process technology. Our R&D capabilities here in Ireland are crucial to our offering, and we are truly confident of further growth and development opportunities into the future’ concluded Dan MacSweeney.
Jose Antonio Fay, CEO BRF commented ‘There are many synergies between our two companies and we are delighted to partner with Carbery Group on this joint venture initiative. They are renowned for their service and technological capability, putting their customers at the centre of projects, and offering world-class quality and innovation. We were also impressed with their proven success on an international scale, and look forward to working with them. Additionally, this venture complements the strategy of expanding the cheese segment especially with the Sadia brand. The increase of cheese production will generate whey which will be further processed in order to extract the full value-added potential of the segment ’.
Carbery, with a turnover of EUR 257 million (2011) employs over 500 people globally with 200 in Ireland and is a leading player in the manufacture of whey based ingredients internationally, brought about by significant investment in research and development . The outputs of this long term R&D programme has led to the development of a range of advanced dairy based nutritional ingredients which are supplied to many of the world’s leading international food and drink companies. Many leading consumer brands in baby food, sports and performance nutrition, together with foods such as yoghurts and bakery products, contain Carbery proteins which are recognised globally for their high quality and efficacy.
The joint venture will house a state of the art manufacturing plant to produce added value nutritional ingredients sourced from whey, a byproduct from cheese manufacturing. These ingredients are utilized by leading consumer brands in baby food and sports nutrition, among others uses. The construction of the processing facility is planned to commence immediately and it will be commissioned in 2014.
John Holland, Operations Director at Carbery Group, who is leading the project said:
‘Carbery has been operating in Brazil since 2007 through Synergy its international flavour and taste business which is building a reputation for the supply of high quality flavour ingredients to many of the major food and drink companies operating in that rapidly growing market. Recently we opened a new flavour manufacturing and technical development centre close to Sao Paulo which will further enhance our market presence in Brazil.’
Peter Bosch, Dairy Technical Director, BRF, the person responsible for delivering added value solutions to BRF’s rapidly increasing milk supply commented ‘We know of Carbery’s long standing reputation for innovation in whey processing and together with BRF’s dairy technology capabilities and consumer reach we are forming a partnership which will deliver long term value to the suppliers and shareholders of the venture partners. It brings a strategic fit for our growing cheese segment in Brazil.’
Carbery Group is expanding its presence in rapidly growing emerging markets and has a growing requirement for skilled graduates in research and development, market development and commercial roles.
