15 May 2008 - Fonterra of New Zealand is investing $NZ 14.6 million (USD 11 million) to double its yoghurt production in Sri Lanka.
According to New Zealander press reports, Fonterra's existing yoghurt plant near Colombo has a capacity of 6 million cups a month and this latest investment would boost capacity to 13.5 million.
The investment is one of Fonterra's largest off shore investments, a company spokesperson said.
At the same time, Fonterra will seek to increase its local raw milk supplies. Within 3 years, the dairy firm expects to be provided with 52,000 litres of milk daily, from 3000 local farmers.
Increasing its local milk supply would help Fonterra against volatile international prices, added the reports.
The reports conclude that the yoghurt market in Sri Lanka has enjoyed double digit growth in each of the past 5 years and annual consumption is now estimated at 12,000 tons.