Glanbia Expands US Dairy Operations with Michigan JV

30 Jan 2017 --- Glanbia is ramping up its dairy offensive in the US by investing in a cheese and whey facility in the US. The Irish food group said it was in “advanced discussions” with three local co-ops-Dairy Farmers of America, Michigan Milk Producers Association and Foremost Farms, USA- on the cheese and whey production facility in the state of Michigan.

It is estimated the plant will process 3.6m litres of milk a day when it is fully operational, adding around 30 percent to Glanbia’s existing US cheese capacity.

If it goes ahead, commissioning of the facility is expected to take place in the second half of 2019.

Glanbia will take a 50 percent stake in the venture, with the rest owned by the three co-ops.

The deal will see the co-ops supply the milk for the plant while Glanbia will oversee commercial, technical and operational control.

Brian Phelan, CEO of Glanbia Nutritionals said: “Glanbia is delighted to announce this exciting proposed project in the state of Michigan with DFA, Michigan Milk Producers Association and Foremost Farms.”

“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.”

The facility will consolidate Glanbia’s status as the number one maker of American-style cheddar cheese.

Glanbia, which is headquartered in Kilkenny, Ireland, did not disclose the cost of the facility but according to one leading analyst, the cost could be as high as $440m.

Glanbia’s current US cheese operations are run out of facilities in New Mexico and Idaho.