€94 million to boost dairy in Brazil
A major name in Brazil’s dairy industry is the Piracanjuba Group. The company has secured financing of €94 million from the National Bank for Economic and Social Development (BNDES) to boost dairy output.
This project will see 2 new factories in a dairy production complex in São Jorge d’Oeste in Paraná. The facilities will have the capacity to process 1.2 million litres of milk per day. According to the BNDES, production will include protein concentrates and isolates (whey protein), powdered lactose, mozzarella cheese, and butter.
The BNDES has approved 2 credit lines, namely the More Innovation Programme (€52 million) and another by FINEM Incentivada (€42 million). In total, the project represents an investment of €115 million.
Once fully operational, the complex will be able to manufacture up to 39,400 tonnes of mozzarella and 7,900 tonnes of butter annually. In addition, 2 attached production lines will use whey, a by-product of cheese-making, to produce up to 6,000 tonnes of whey protein and 14,800 tonnes of powdered lactose per year.
Economic and technological impact
Whey protein and powdered lactose derivatives have wide-ranging applications in nutrition, the pharmaceutical industry and cosmetics, adding value to Brazil’s dairy chain. According to 2023 data from the Ministry of Agriculture and Livestock, the country meets only 15% of its internal demand for whey protein. The remaining 85% is covered by imports.
Luiz Claudio Lorenzo, president of Piracanjuba Group, explains that the company sought BNDES financing to leverage new technologies in the dairy sector and thus sustain the group’s growth in the coming years. “This unit will bring together high technology, with modern equipment and large capacity, helping to standardise product quality and operational efficiency, guided by a sustainable approach involving water treatment and reuse, as well as production and use of biogas as an energy source. Additionally, the job opportunities created will generate income for the local economy,” he said.
Aloizio Mercadante, president of BNDES, said the project will create 250 new direct jobs in the region and improve local family incomes. “The approval of this project represents the expansion of Brazil’s technological frontier, with the nationalisation of production and industrial systems, while also contributing to substituting imports of milk products worth US$54 million on Brazil’s trade balance,” said Mercadante.
José Luís Gordon, director at the public bank, adds that the project aligns with government goals to strengthen agribusiness chains for food and nutritional security, adding value to Brazil’s dairy sector.
