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"These plants will make processed milk with a shelf-life of 30-40 days, which is the international standard. Now it is only three days," he told a news conference.
The funds will be from a loan to be obtained by state-owned Milco through its banks.
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"We spend a lot of money on imported milk production. We're increasing local milk production with the development of the livestock industry.
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"The government expects milk production to increase to about half our requirements by 2015 from the current 22 percent and to become self-sufficient later."
Work on the two plants will start immediately and be completed by 2015.