Tnuva, Israel's largest dairy company, will construct a whey processing plant at an investment of US$34m. The new plant, to be constructed in cooperation with New Zealand-based FSG and Penhold of Canada, will be the first of its kind in the Middle East, and one of the largest in the world. FSG is one of the world's leading companies for the production and marketing of whey.

Tnuva said the new plant will process annually 200,000 cubic metres of whey as nutritional supplements and for the pharmaceutical industry, with sales estimated at US$10m during the first year of production. In addition, the company said that 70% of its production volume, or about 10,000 tonnes, is slated for export.

By Aaron Priel, correspondent