Friesland Indonesian investment targets Asian functional drive

By Neil Merrett

- Last updated on GMT

Related tags: Milk, Netherlands

Dairy and ingredients firm Friesland Foods Kievit has constructed a
new drying plant in Indonesia for producing encapsulated
products to expand the group's portfolio in the wider Asian region.

The €20m investment in the Filtermat dryer forms part of the Friesland Foods' plan to expand its presence for encapsulated goods like infant formula and enhanced nutrition ingredients in the burgeoning markets of the region. According to the company, Asia already accounts for 24 per cent of Friesland Foods Kievit's total turnover, a figure that the company expects to grow further in the future through an extended focus on added health and quality benefits. The construction of the Filtermat dryer technology, which the group says has been in use at its Dutch operations in Meppel since the 1980's, will allow the company to produce a broader number of encapsulated products. A company spokesperson told DairyReporter.com that the dryer would also help ensure the group were better positioned to meet the specific demands from its Asian consumers. The spokesperson said that encapsulation was a technique of reducing ingredients to a micro level. They added that in a number of cases, the process made the formulation of products easier by allowing even gasses to be encapsulated in order to provide effects such as the foam in an instant cappuccino. "Very often the encapsulates need to be odour or taste free, so that consumers can have the benefits of for example a healthy ingredient, without the sometimes negative odour or taste,"​ the spokesperson said. "The ingredients that are ´packaged´ are mostly fluids, using the encapsulation technology to transfer them into powder."​ These extended range of encapsulated products expected to be made available include complex emulsions and more difficult-to-dry ingredient powders, bringing the company's Asian output in line with that of its operations in the Netherlands. This portfolio includes infant formulas, beverages, enhanced nutrition, savoury and bakery products. Friesland Foods Kievit is a division of Royal Friesland Foods that specialises in functional ingredients. The company has had production capabilities in Asia since 2002, when it began working with Frisian Flag Indonesia. The group says it has been supplying encapsulation products in the region since 2005, after acquiring a local dairy group.

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