Granja Pocha’s Colonial dairy brand. Credit: Granja Pocha.

Lactalis plans to buy the Uruguay-based dairy company Granja Pocha.

The French dairy giant said in a statement it will buy all of the shares in family-owned Granja Pocha, which produces items such as cheese and yogurt under its Colonial brand.

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Granja Pocha manufactures its products at a facility in Juan Lacaze, a city in south-western Uruguay.

“With this acquisition, Lactalis Uruguay will expand its local market position, and an additional 60 million liters of milk will be processed into dairy products, complementing Lactalis Uruguay’s existing offer of cheese, fluid milk and milk powder,” a spokesperson for the French dairy business told Just Food.

Financial terms of the deal, which is subject to approval by Uruguay’s competition authority, were not disclosed.

Lactalis added in the statement that the acquisition of Granja Pocha will “contribute to enhancing the company’s sustainability in the medium and long term”.

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Granja Pocha has 160 employees, all of whom will be retained post-transaction, Lactalis said.

Director of the Uruguayan food producer Edgardo Villanueva and his family will continue to “collaborate” after the move, Lactalis, the owner of the Président dairy brand, among others, said.

The French dairy producer already has a presence in Uruguay with a factory in Cardona, which includes a drying tower that will complement production at the Granja Pocha plant in Juan Lacaze.

Granja Pocha also produces dairy desserts and dulce de leche, a caramel-based sweet treat popular in Latin-America.