Arla and Dairy Farmers of America (DFA) have agreed to enter into a joint venture that includes the construction of a small dairy plant in the U.S. for cheddar cheese production. In their first collaboration ever, the two farmer-owned cooperatives plan to explore opportunities to build premium-quality standards in the cheddar category, in the world’s biggest cheese market.
Part of the joint venture agreement is the construction of a production site in the western part of New York State, where the eight farms supplying the raw milk are placed. The joint investment is $58m (€53m) of which Arla covers 20 per cent or $11.6m (€10.3m).
The joint venture will be owned 70 per cent by DFA, who also holds the management role, 20 per cent by Arla and 10 per cent by the eight farmers who supply the milk. 30 people are expected to be employed in the joint venture.