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September 6, 2011 Portlandbiz

Looking to improve, Brazilian dairy producers tour Maine

Photo/Matt Dodge Verus Madasa Technical Officer Andre Oliveira, center, of Brazil asks a question of an Oakhurst quality control employee during a Sept. 2 tour of the dairy.

A Westbrook biotech company hoping to capitalize on Brazil's burgeoning dairy industry hosted a delegation of the country's milk producers, professors and students for a week-long summit. Idexx Laboratories and its Brazilian distributor, Verus Madasa, last week took the 30 participants on tours at every level of Maine's dairy industry, from New Gloucester's Pineland Farms to processor Oakhurst Dairy and distributor Hannaford Bros. Co. The summit marketed Idexx's new milk diagnostic technology and shared industry practices from farm to fridge.

"The key points of this trip are to learn about regulation, learn about technology and to have the opportunity to see the technology being applied in the field," says Verus Madasa director Eduardo Carlos de Gosztonyi Abecia.

Sharing best industry practices with the Oakhurst crew was of particular concern to the contingent from Brazil, where high temperatures and poor rural infrastructure take their toll on the longevity of dairy products, according to Verus Madasa technical officer Andre Oliveira. The average shelf life of Brazilian pasteurized milk is five to seven days, compared to 19 days for Oakhurst milk.

"They obviously have a lot to gain from hearing about our cleaning practices, our sanitation programs and the different chemicals and processes we use," says John Bennett, Oakhurst's executive vice president. Oakhurst's secret to quality in processing? "Keep it clean, keep it cold, keep it moving. That's the mantra," he says.

Idexx's SNAP brand dairy testing products have already been used for 17 years in Brazil and are considered a leading diagnostic technology, according to Abecia. "We have improved the quality of milk in Brazil and we can say that's based on the SNAP technology. I think this trend will continue as [we] learn how to use it more efficiently."

Brazil currently represents the 15th largest country in terms of revenue for Idexx, but is poised for some rapid growth according to Ali Naqui, the company's corporate vice president for international operations. "Brazil's economy is booming; it's a very important market for us," Naqui says. "We're interested in working hard to grow our business in Brazil. I think this conference has been a great event in that process."

IDEXX produced over 30 million SNAP tests last year, which are used to test everything from heartworm to infectious diseases in livestock. The product takes its name from the sound produced when the device is pressed down on one end to release a chemical reagent.

The dairy line of SNAP tests serves as a quick, portable way for dairy processors to test milk at the source, and a new Idexx product released in April is poised to further improve testing efficiency. The SNAP Beta-Lactam ST is designed to test for the presence of antibiotic residue in raw milk, which can cause problems in the processing of cheese and yogurt and pose potential health risks to consumers, according to the company.

"It's making the whole process more efficient because we're not driving around with trucks full of [tainted] milk -- you're finding out if you have a problem right there next to the cow," says Abecia.

The new SNAP test saves processors money and allows farmers to test milk more quickly than the previous test. "Processors need less equipment -- they simply pour, snap and read," says Bill Lane, Idexx's operations manager. Previous two-step testing systems took as long as 10 minutes, whereas the new test takes six minutes.

Released internationally in April, the SNAP Beta-Lactam ST is still awaiting U.S. approval from the Federal Drug Administration.

Specializing in veterinary diagnostic products, Idexx reported $1.1 billion in revenue last year, with $906 million coming from its line of companion animal testing products. Diagnostic products for the dairy sector represented the smallest portion of the company's revenue in 2010, with $40 million.

Director and general manager of Idexx Dairy Chun Ming Chen said that while the company does have plans to open a branch office in Brazil, the timeline for the expansion is not yet public. Idexx currently has facilities in 14 countries and is set to expand its Westbrook campus by 2013, creating 700 new positions.

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