Dairy Crest

British dairy firm Dairy Crest is set to invest around £65m in the production of two infant formula ingredients, in order to cater to the increasing infant formula market across the globe.

Of the total investment, £45m will be used in the production of demineralised whey powder, which is the base ingredient in infant formula.

Meanwhile, the remaining £20m will be invested at Dairy Crest’s Davidstow site to manufacture galacto-oligosaccharide (GOS), a lactose-based prebiotic used in infant formula.

The company will begin the commercial production of demineralised whey powder early in 2015/16, with plans to begin the production of GOS later that year.

Additionally, Dairy Crest has entered into a strategic partnership with New Zealand-based dairy co-operative Fonterra to market and sell both the products.

Through the partnership, Fonterra will provide technical and engineering support to the company, as well as lactose for the production of GOS.

The company will also enter into a joint venture with Fayrefield Foods, which will supply the necessary enzyme for the production of GOS.

Dairy Crest chief executive Mark Allen said, "These partnerships, with leading experts in the field, give us exposure to global growth opportunities."

Image: Dairy Crest and Fonterra enter into partnership. Photo: courtesy of Dairy Crest.