NETHERLANDS: FrieslandCampina expands milk powder production

By Katie Smith | 14 October 2011

Dairy giant FrieslandCampina has confirmed plans to expand its milk powder production in order to increase supplies to emerging markets.

The company is investing EUR13m (US$17.9m) in its Leeuwarden factory by updating it with equipment and increasing its output.

"With the investments we can supply our own operations in markets including Nigeria with milk powders, as a solution for growing markets," a spokesperson for FrieslandCampina said.

He added that the investment will also be used for exporting milk powders to other countries.

In August, the company's reported a fall in its half-year profits as earnings in Europe slumped. This was due to pressure on margins in Europe, investments in the organisation and negative currency translation effects. 

Operating profit from FrieslandCampina's international consumer products division, which includes Asia, Africa, the Middle East, fell from EUR197m to EUR192m in the same period last year. However, revenues from the division increased by 9.1%, due to higher selling prices and volume growth, especially of infant and toddler nutrition.

Meanwhile, high demand from Asia for dairy ingredients helped revenue from FrieslanCampina's ingredients business grow. 

In all, FrieslandCampina's group revenues were up 9.3% to EUR4.7bn.

Sectors: Commodities & ingredients, Dairy, Emerging markets

Companies: FrieslandCampina

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