Looking to increase its U.S. presence and boost its whey protein business,Arla Foods Amba , Viby, Denmark, said it agreed to a whey processing and marketing deal withGreen Meadows Foods LLC, a newly formed natural cheese processor in Hull, Iowa. The two sides expect to finalize the partnership in the second quarter of this year. Terms provide for Green Meadows to provide milk and whey raw materials. Arla then will process, market and sell all whey products.
"We feel this strategic move to partner with Arla foods will position us well into the future as a leading milk processor in the important I-29 corridor," said Green Meadows President Sjerp Ysselstein. "By combining our state-of-the-art operation with Arla's process technology and marketing abilities, we will achieve our goals to move away from the commodity whey business. In addition, it provides a roadmap to accomplish our capacity expansion plan."
In a January profile,Dairy Star, an industry publication, said Green Meadows will have the capacity to process 700 million pounds of milk annually and produce both 40-pound and 640-pound blocks of Colby, Colby Jack, Monterey Jack, Mild Cheddar and Aged Cheddar cheeses.