Iffco eyeing overseas tie-up for Nellore dairy project

The world's largest farmers cooperative Iffco today said it is negotiating with two global players for setting up an integrated dairy in its upcoming food-processing SEZ at Nellore.

Besides, Indian Farmers Fertiliser Co-Operatives (Iffco) is also in talks with a Russian company for setting up a fertiliser plant there, Managing Director U S Awasthi of the company said.

"We are negotiating with a firm in the US and New Zealand for setting up an integrated dairy in our farm-based food processing SEZ (special economic zone) in Nellore," Awasthi told reporters here.

The proposed dairy envisages an investment of Rs 1,000 crore, Awasthi said, adding, "we expect to sign the deal before end-December."

Besides equity partner, the overseas firm would also be a management partner in the venture, he said, adding, "the marketing will be done by Iffco."

The venture would have around 6,000 livestock, which will be imported to begin with "however, later we will develop a local cross-breed", Awasthi said.

Iffco is also scouting for a partner to set up a fertiliser plant in Russia. "We are talking with a Russian company for a joint venture for fertiliser production there," he said.

He, however, did not disclose the identity of the entity Iffco is negotiating with.