Nestlé and Fonterra, a cooperative from New Zealand, are going to install an industrial unit in the city of Palmeira das Missões, in the southern Brazilian state of Rio Grande do Sul.
The new dairy, to be called Dairy Partners America (DPA), is going to process one million liters of milk a day, and will receive investment of US$ 33 million (70 million reais).
The forecast is for the first phase of installation, organization of production, to be completed up to August 2007.
Initially, around 12,000 producers should supply milk to the dairy plant. This information was supplied by the government of the state of Rio Grande do Sul.
Nestlé has been operating in Brazil for 85 years and has 26 factories installed in the country. Brazil is the second largest producer of Nestlé products in the world, and the company is the largest buyer of milk in the country.