Kraft Foods is to produce cream cheese for Australian dairy Warrnambool Cheese and Butter Factory, the latest deal between the two companies.

The agreement, announced yesterday (21 March), will see Kraft produce cream cheese under Warrnambool’s Sungold brand for Asian markets. The product will be exported to WCB’s customers in Japan, China, Singapore, Malaysia and the Middle East.

The deal is expected to provide a staged increase of up to 5,000 metric tonnes of product per annum for WCB, exclusively.

The agreement follows a recent collaboration deal with Kraft Foods. WCB has developed low-fat cheese for Kraft marketed under the Livefree brand.

“It is an exciting time for WCB, with the cream cheese and low fat cheese agreements building on an already strong relationship with Kraft Foods,” said WCB CEO David Lord. “Both agreements are consistent with our strategy to build a portfolio of higher margin products and deliver more customer specific applications.”