Irish dairy group Glanbia has confirmed it is in “advanced” talks with three US dairy suppliers, including Dairy Farmers of America, over the formation of a stand-alone joint venture in the country. 

Glanbia said this morning (27 January) that it is in discussions with Michigan Milk Producers Association and Foremost Farms alongside Dairy Farmers of America with a view to establishing a JV that would construct and operate a new cheese and whey production facility.

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The plant would be located in Michigan and, upon completion, it would process an estimated 8m pounds (3.6m litres) of milk per day, Glanbia added. 

It is proposed that 50% of the joint venture will be owned by Glanbia and the balance will be owned by DFA, MMPA and Foremost Farms. 

The proposal would see DFA, MMPA and Foremost Farms supply all milk required by the plant while Glanbia will have full responsibility for all commercial, technical and operational aspects of the business.  

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If the project proceeds as planned, commissioning of the new facility is expected to take place in the second half of 2019.

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“Consistent with Glanbia’s growth strategy, this proposed venture will build on our position as the number one producer of American-style cheddar cheese and simultaneously expand our global position as a supplier of advanced technology whey protein to the nutritional sector. This proposed joint venture is a strategic move by all the partners to benefit from the growing, large-scale milk pool in the state of Michigan,” Brian Phelan, CEO of Glanbia Nutritionals said.