Arla Foods, Dairy Farmers of America form U.S. cheddar cheese joint venture
The goal of the joint venture is to become a Top 10 retail cheese player by expanding the business beyond the deli section into the dairy aisle.
Arla Foods, a global dairy cooperative based in Denmark, and Dairy Farmers of America (DFA), Kansas City, Mo., entered into an agreement to form a U.S. joint venture for the development and production of premium cheddar cheese. The joint venture will include construction of a dairy facility for cheddar cheese production in western New York.
“Together, with Dairy Farmers of America and eight of their farmers who will supply the raw milk, we will explore opportunities to bring premium quality standards to the cheddar category through the Arla brand. Adding cheddar to our U.S. portfolio will allow us to expand our offerings to retailers, and help increase the sales of our European products made from owner milk,” says Peder Tuborgh, chief executive officer of Arla Foods.