A new joint venture was inaugurated yesterday in Dammam between Saudi Dairy Food Products (SADAFCO) and New Zealand Dairy Products, which operates in the Gulf from its base in Bahrain. The new company, known as Saudi-New Zealand Dairy Products, is capitalized at SR 40 million (U.S. $ 10.7 million), of which SADAFCO has a share of 51 percent. The plant, built on an area of 20,000 square meters, has an initial processing capacity of 20,000 tons of dairy products annually (15,000 tons of milk powder and 5,000 tons of cheese) using the most advanced technology. This new project highlights the strong cooperation between the Kingdom and New Zealand and assures a competitive edge for Saudi Arabia when it becomes a member of the World Trade Organization (WTO). The trade exchange between the two countries reached SR 508.8 million (U.S. $ 135.7 million) in 1994, and for the first half of 1995 totaled SR 162 million (U.S. $ 43.2 million). Imports from New Zealand are mainly mutton, milk, cheese, and fruit.