The 10-year arrangement, known as Project Minella, will continue for another three-year period, the two bodies have announced.

As part of the arrangement, Dairygold will process whole milk into cheese, whey and/or skim milk powder for GII while Glanbia will process cream into butter and buttermilk powder for Dairygold.

The arrangement was first established some 10 years ago as Glanbia was closing down Kilmedan cheese plant and Dairygold was able accommodate cheese production at its Mitchelstown facility.

As part of the arrangement then, Glanbia, in essence, took over the operation of Dairygold’s liquid milk business, CMP.

This continuation of arrangement also allows Dairygold to plan for the expansion of its Mogeely plant which is currently at planning and development stages.

In a joint statement Jim Woulfe, CEO, Dairygold and Jim Bergin CEO, GII said the relationship works for both parties.

“The contract manufacturing and supply working relationship over the past 10 years has been mutually beneficial for both parties. Collaboration has worked well and continues to be strategically significant in allowing each of the two businesses to build out their processing investment plans, while working together in areas of significant mutual benefit.”

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