Canada's largest dairy cooperative Agropur is to buy US cheese producer Trega Foods in order to pursue its expansion south of the border.

The acquisition will be Agropur's second in the US since 2002. "We are increasing our presence in the United States, and this business transaction is in direct link with our development strategy," said Pierre Claprood, CEO of Agropur.

Trega Foods are producers of cheddar, feta, mozzarella and provolone, as well as a variety of other dairy ingredients.

The company's three facilities employ 300 people and process around 650m litres of milk a year with annual sales of US$300m.