Ofi doubles functional ingredients output with Malaysia dairy production expansion

29 Sep 2023 --- Olam Food Ingredients (Ofi) has announced the expansion of its dairy production facility and Ingredient Excellence Center (IEC) in Johor, Malaysia. The company has added a new milk powder dryer that could “more than double” the output of functional dairy ingredients and fat-filled milk powder per year.

The IEC has also been upgraded with new laboratory spaces and research and development equipment to support customers in creating customized solutions for beverages, bakery and frozen dairy desserts.

The enhancements are part of Ofi’s strategy to build a value-added ingredients and solutions-led organization that serves customers across the Middle East, Africa and Asia. (EMEA)

“We are seeing strong levels of demand from our customer base, particularly in the Middle East, North Africa and Asia and this has supported our investments such as the Malaysia plant expansion and our New Zealand processing plant development,” Sandeep Jain, managing director and CEO of dairy at Ofi, tells Food Ingredients First.

“Consumers across Asia have unique needs and preferences for health, taste and convenience, which require deep localized knowledge. The newly expanded Malaysia plant facilities, along with our Customer Solutions Center in Singapore, are strategically located in markets across the region to provide us with that deep understanding of how food trends will evolve and wider consumer tastes change.”

 According to the business, the IEC’s new capabilities enable Ofi to better collaborate with brands, grocery retailers and foodservice companies. 

Supporting a growing market
The company aims to enhance its customer service model and co-creation capabilities across Asia and Africa, focusing on high-growth end-use categories such as ready-to-drink beverages, premixes and blending lines.

Ofi is expanding its presence in the Asia-Pacific region, the largest dairy market in the world.“Building on our strategy to provide localized, customized food and beverage products that will appeal to local customers, the expanded capabilities in Malaysia enable us to co-create products focused on health, taste and convenience,” Jain explains.

Also in the EMEA region, Ofi recently opened a new herb processing facility in Beni-Suef, Egypt, to expand its customer offering in basil, fennel, marjoram, parsley and dill. 

Signature products with sustainability efforts
The new facilities also offer Ofi’s Lactorich range of dairy solutions. One of the standout products from this range is Lactorich Vers, which replaces whole milk powder in various applications without compromising on taste or texture.

It offers a rich, creamy mouthfeel and a clean profile with no added flavors.

According to Jain, “fat filled milk powder is nutritious, with a desirable texture and flavor.”

“It can be used in many applications from ice cream and yogurts, bakery goods and confectionary items, through to coffee, tea and cocoa beverages,” he details.

 “For food manufacturers, it’s a great choice because it is cost-effective but does not compromise on taste or nutritional value. It is also highly stable with a good shelf life, which helps with storage and distribution.”“Consumers across Asia have unique needs and preferences for health, taste and convenience, which require deep localized knowledge,” according to Jain.

Moreover, he explains that the expanded plant has been designed around “food safety and operational excellence,” helping with Ofi’s sustainability efforts. “This includes an automatic and ergonomic raw material feeding system and an advanced depalletizing system, ensuring consistent product quality,” he details.

Despite having sufficient water resources, Malaysia has seen a rising demand for water in recent years. In the face of this challenge, the Malaysian plant uses solar power and rainwater harvesting and operates and has “close to zero” raw material wastage.

Exploring growth opportunities
Shekhar suggests, “With increasing demand from our global customer base, we will continue to explore growth opportunities within dairy ingredients that drive additional focus on the value-added capabilities within our portfolio.” 

“These enhanced facilities are a key part of this, complementing our existing global footprint, supporting greater collaboration with our customers,” he notes.

Ofi is expanding its presence in the leading dairy market. Asia is the top region for dairy and milk launches (45% of global share for both), data from Innova Market Insights indicates. The area also leads in milk share by value (37%) and is second in dairy sales with 32% of the market (behind Europe’s 33%).

Edited by Marc Cervera