Olam's food ingredients unit to develop dairy processing facility in New Zealand

AGRI-FOOD giant Olam International O32 's unit Olam Food Ingredients (OFI) has confirmed plans to develop a new dairy processing facility in Tokoroa, New Zealand.

The first stage of this investment development is expected to be commissioned in the third quarter of 2023, which the company said is in time for "New Zealand's peak season". The facility is also expected to create 50 to 60 full-time jobs when fully operational.

The development will involve the construction of a spray dryer facility that is capable of producing high-value dairy ingredients.

Olam said the Tokoroa plant will become part a global network that spans 20 major milk consumption markets that include South-east Asia, China, the Middle East and Africa.

OFI Dairy's senior vice-president Naval Sabri said that additional facilities will be added to the plant over time to expand the range of high-value ingredient products manufactured at the site. These products will target key customer applications in dessert, bakery, beverage, and confectionery categories.

Said Mr Sabri: "This facility will complement and enhance our ability to support our global customers and meet growing consumer demand for products that are natural, nutritious and delicious.

"The Tokoroa dairy ingredients will form part of OFI's much wider natural ingredients portfolio which includes cocoa, coffee, nuts and spices, ideal combinations with dairy for customised products such as yogurts, protein bars and ready-to-drink tea, coffee and cocoa beverages."

Shares of Olam closed unchanged on Tuesday at S$1.61.