Indian dairy processor Parag Milk Foods has secured funding for expansion from the International Finance Corporation, the investment arm of the World Bank.

The IFC is loaning Parag US$15m to help expand its portfolio of value-added products, including UHT milk and whey powder. The money will also be used to improve its supply chain network and for food safety. 

Parag chairman and MD Devendra Shah said: "IFC's global knowledge and expertise in the dairy sector will help the company develop best practices to increase milk yields, adopt environmental and food safety standards and upgrade technology and operational practices. The project will benefit dairy farmers, a critical link in the company's supply chain."

The IFC has invested $4.5bn across the agricultural sector in 2013, including in projects with Greece-based bakery and confectionery group Chipita. In September, the IFC bought a stake in Brazilian beef processor Minerva as part of an agreement that saw it lend the business BRL137.7m.

Click here for our two-part Sustainability Watch column on the IFC, published in April and May, which looked at the agency's investments in the agribusiness sector.