Russian delegation visiting NZ dairy investment

Media Release

For immediate release

30 March 2009

Attention: Business/rural reporters

Russian delegation visiting NZ dairy investment

A delegation from the Russian owned group with a majority shareholding in Waimate based New Zealand Dairies Limited (NZDL) is visiting this week to look at strategies for the future.

This includes developing value-added production of specialist foodstuffs and possibilities for further development at the NZDL Studholme plant in South Canterbury.

Nutritek Group last year became the majority shareholder in NZDL with an investment of more than $100 million into South Canterbury, making it the biggest overseas investor in New Zealand's growing dairy industry.

The visiting delegation, which includes new American CEO of Nutritek Mr Jim Dwyer, formerly of Danone, and Nutritek Chairman Dr George Sazhinov, will also hold discussions at local and Ministerial level in terms of future investment in the New Zealand Dairy industry.

The visit is Mr Dwyer's first to New Zealand and follows the recent delay of expansion plans at Studholme as a response to the global financial turmoil and the credit squeeze.

Nutritek CEO Jim Dwyer said in the past year NZDL had demonstrated its efficiency and proven it can compete in the global dairy industry.

Mr Dwyer reiterated comments made by NZDL's Chairman, Peter Lavery, that the company is running smoothly and expects to have no uncommitted stock at the end of the season in May.

"We are very pleased with the performance of NZDL. With a strong management team, dedicated farmer suppliers and a skilled workforce NZDL is very well placed for the future."

Mr Dwyer said Nutritek's additional $100 million expansion plans are on hold for now until a clear assessment can be made in response to global financial turmoil.

"We are in a sound position and looking at plans for the future to strengthen our links with the Asia Pacific region."

Nutritek, the major producer of Baby food in Russia is also keen to explore how its Russian links could benefit companies looking for export opportunities.

ENDS

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