Canadian dairy co-ops Agropur and Agrifoods have signed a deal to continue making YOPLAIT products through their joint venture Ultima Foods following a dispute over the production and operation of the brand.

The two dairy farmer co-operatives will continue making the yoghurt for General Mills in Canada under licence for around six more years, the companies have said, in addition to launching their own yoghurt and dairy goods line this summer.

A spokesperson for Ultima Foods said the two parties had been “discussing” the terms of the venture’s licence to produce and market Yoplait yoghurts in Canada, which was set to expire.

“The questions focused on who would produce Yoplait yoghurts going forward, and who would support the other aspects of the business. In the end, the two companies were able to resolve these questions and reach an agreement for the future,” the spokesperson told just-food.

As a result, Ultima Foods will produce Yoplait branded products for General Mills in its plant in Quebec. General Mills will market, distribute and sell the products across the country.

Ultima Foods will also launch its own yoghurt brand in Canada, details of which are to be announced.

“This sequence of events is the result of the steadfast determination of the members of Agropur and Agrifoods to remain key stakeholders in the production and merchandising of yoghurt across the country,” the company said.

“The signing of a custom processing agreement, combined with the launch of a new yoghurt brand, forms the basis of a strategy that aims to place Ultima Foods in a position of leadership in the Canadian yoghurt industry,” added Agropur chairman Serge Riendeau.