Singapore-based Olam International will invest $75 million in a 75 percent stake in the Russian Dairy Company, the Russian diary producer said on Monday.
In a deal to be signed today, the partners will invest $400 million in Russian Dairy Company by 2015. They plan to double the area under cultivation to 106,000 hectares and the dairy herd to 20,000 head from the current 7,200, turning the company into one of the world’s top ten dairy producers and Russia’s largest.
Later, the partners plan to increase the dairy herd to 50,000 head and gross milk yields to 500,000 tons per year over three to four years and boost the area of cultivated land to 130,000 hectares.
Russian Dairy Company integrates nine farms in the Penza Region, some 625 km (388 miles) southeast of Moscow, and employs 900 people.
Olam is a leading global supplier of agricultural products and food with operations in 65 countries.