Irish dairy company Glanbia has signed a joint venture agreement with Belgian Bongrain subsidiary Corman to manufacture and market dairy spreads and butterfat products, according to the Sunday Times newspaper.
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The company will operate as Corman Miloko Ireland Limited and involves an initial investment of €5m (US$5.97m), rising to more than €10m over time.
The deal, which is subject to the approval of the European competition authorities, involves the transfer of a Glanbia-owned factory in Carrick-on-Suir, Co Tipperary, into Corman Miloko, as well as the Irish group’s existing butteroil equipment at its plant in Ballyragget, Co Kilkenny. The move secures 40 jobs at the Carrick-on-Suir facility.
Butterfat makes up 82% of butter and is also used in a range of dairy spreads and confectionary products. This move by Glanbia has been prompted by the reform of the Common Agricultural Policy, which means that supports and refunds are set to be cut for butterfat. Glanbia hopes to use Corman’s technology and marketing skills to enhance efficiencies at the Irish operation.
Corman is a leader in specialised butterfat technology products, processing in excess of 100,000 tons of butterfat annually for export markets. It is understood that the company requires additional production capacity and a secure source of butterfat.
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By GlobalDataGlanbia is Ireland’s largest producer of butterfat. It sells directly to international customers and through the Irish Dairy Board.
