Arla AFISA

completed

The proposed investment is for a long term IFC A loan and B loan for an aggregated amount of US$56 mn to AFISA, to support the expansion of the Company’s whey intake from 900,000 to 1,200,000 MT per year and permeate drying capacity from 24,000 to 45,000 MT per year. The project calls for the construction of a new permeate tower to allow AFISA to increase permeate drying capacity and at the same time, switching the existing permeate drying tower to processing whey protein concentrates (WPC). AFISA, founded in 2000 as a JV between Arla Foods Ingredients (Denmark) and SanCor (Argentina), is a premier and leading processor of whey, a by-product of cheese production. AFISA is primarily operated by AFI, with SanCor functioning principally as a supplier of raw materials. AFISA controls the management, the commercial, processing and strategic direction, while SanCor provides the JV with the whey. Environmental and social sustainability standards are promoted by this project as whey is typically disposed of through land application or used as animal feed. By increasing the economic valued of whey, a milk derivative previously considered to be waste, processors such as AFISA help reduce the waste stream. The Company possesses first-rate technological capabilities, as well as a solid track record and full commitment to E&S standards. AFISA’s processing facility is located in Porteña (Córdoba, Argentina). In this plant, the whey is filtered, dried and converted into whey protein concentrates functional milk proteins (FMP) and permeate powders. These products are used for functional nutrition, to replace lactose and milk powder in foods including infant formulas and it is also used as animal feed.