Glanbia will take a 50% share in the joint venture to build the new cheese and whey factory, which will be located in Michigan, USA. The arrangement will see the three other partners supplying all the milk required by the plant, which is projected to be up to 3.6m litres per day, while Glanbia will have full responsibility for all commercial, technical and operational aspects of the business.

The plant is expected to be up and running in the second half of 2019.

Brian Phelan, chief executive of Glanbia Nutritionals, said, that this joint venture is consistent with Glanbia’s growth strategy and that it will build on Glanbia’s position as the number one producer of American-style cheddar cheese.

This plant will expand Glanbia’s position in whey protein to the nutritional sector.

While Glanbia is Ireland’s largest dairy processor, it also has deep roots in the dairy industry in the US and is the largest dairy processor in Idaho. South West Cheese, its joint venture with the Greater Southwest Agency based in Clovis, New Mexico, is one of the largest cheese and whey protein manufacturers in the world.

Michigan growth

In recent years, milk production in Michigan has been increasing. In 2015, it was up nearly 7% compared to the prior year and increased approximately 6% in 2016 making it the seventh largest milk production state in the US.

The other partners are taking a combined 50% in the joint venture. Dairy Farmers of America is a dairy marketing co-op owned by more than 14,000 members. The Michigan Milk Producers Association is also a farmer owned co-op of around 2,000 dairy farmers. Foremost Farms is a farmer-owned cooperative with 1,300 dairy farmers.

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Dairygold and Glanbia extend processing arrangement