Arla Foods has signed a deal with Green Meadows Foods that, it hopes, will lead to the eventual acquisition of the US cheese-maker.
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The agreement will see Green Meadows Foods provide milk/whey raw materials while Arla brings its product and process technology to the table. Arla will also sell and market all products produced by the venture.
The companies will work together to develop the whey stream coming from Green Meadows Foods newly opened cheese facility in Hull, Iowa. The facility has a start-up capacity of 2.5m pounds of milk per day and includes plans to expand capacity by 5m pounds per day “in the near future”.
“This partnership is poised to become a leader in the North American protein market,” the companies said today (2 March).
With this partnership, Arla said it would solidify its position as a global market leader in whey, providing a strong basis for further growth.
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By GlobalData“Applying our global whey concepts to the American market and establishing a local partnership will provide significant new opportunities for us,” Arla SVP Henrik Andersen said. “The American market is approximately 50% of the global whey protein market and we are now entering with a strong partner.”
The intent of the partnership is that Arla will acquire 100% of the whey processing assets in Green Meadows Foods. It is expected that definitive agreements can be signed during the second quarter of 2009, Arla said.
