New Zealand to help thousands of Peruvian dairy farmers

New Zealand is to fund a four-year partnership to help the development of dairy farms in the central highlands of Peru, Economic Development Minister Steven Joyce said Friday.

New Zealand would give 4 million NZ dollars (2.85 million U.S. dollars) to the New Zealand Peru Dairy Support Project, which aims to improve the profitability of up to 90,000 dairy farmers in the Peruvian Sierra, said Joyce.

"The project will focus on assisting Peruvian farmers with New Zealand technologies to improve milk and cheese production, handling and processing practices, and more effective research and extension," said Joyce, who launched the project in Lima, in a statement from his office.

"Dairying has good potential to increase smallholder dairy productivity and incomes in the Sierra, generating regular cash income and contributing to household nutrition and food security," he said.

"Domestic demand for milk and milk products is steadily growing in Peru and the industry has a strong commercial basis and reasonably well-developed value chains to support future growth."

Peru's government was committed to increasing the productivity and competitiveness of its dairy sector and had made considerable national and regional level dairy investments in the Sierra.

The New Zealand investment would be matched by funding from Peruvian programs. Endit