Irish dairy group Dairygold and Norwegian peer Tine have been given the green light to develop a facility in County Cork.

The duo plan to use the new facility in Mogeely to manufacture Jarlsberg cheese, a brand owned by Tine, which is Norway’s largest farmer-owned dairy cooperative.

Irish planning body An Bord Pleanála has approved the proposal for the factory which the dairy partners suggest will have a capacity to produce up to 20,000 tonnes of the cheese annually. 

The cheese produced at the new facility will be exported to Europe, the US and elsewhere. Dairygold said it will provide a “Brexit-proof route to market for locally produced milk”.

The company has a strategic partnership with Tine and has been manufacturing Jarlsberg cheese on its behalf in its existing facility in Mogeely for a number of years. 

Dairygold CEO Jim Woulfe said: “We’re very pleased that planning has been approved by An Bord Pleanala for the proposed development which is pivotal to the continuation of our strategic partnership with Tine whose commitment to this development with its significant investment, along with Dairygold’s, reflects a strong vote of confidence in the high-quality dairy produce of our members.”

In December, it was revealed Tine planned to invest EUR77m (US$90.4m at the then exchange rate) in the new facility as it seeks to “consolidate” sales outside of its home market.

Dairygold said it would make a “considerable” investment in the new plant.