Nestlé and Fonterra to invest in Brazil

Swiss Nestle and New Zealand’s Fonterra are to open a dairy in Brazil in the first half of 2008. According to a statement from Nestle’s Brazil unit, the companies will invest 70 million reais ($39.5m) in the plant. It will become one of Brazil’s five biggest dairies with a production capacity of 1 million litres a day.

This comes on top of the previous statement from Nestle that the company aims to invest 400 million reais ($153m) in the country in 2008 through acquisitions and expansions. The company intends to double annual sales in Brazil by 2011.