Arla Foods and Foremost Farms may form strategic partnership

Arla Foods and US-based dairy cooperative Foremost Farms USA are in advanced discussions about forming a strategic partnership, the companies said in a statement. 

The vision of a potential partnership is to increase the value of whey through innovation, by combining Foremost Farms’ whey with Arla Foods’ ingredient know-how and sales channels.

A memorandum of understanding has been signed by the companies to formalise the possibility of the future partnership.

Henrik Andersen, group vice president of Arla Foods Ingredients, said: “As farmer-owned cooperatives, Arla Foods and Foremost Farms USA share many of the same values and both parties see a high degree of compatibility on visions and ambitions within whey.

“We are confident that Foremost Farms can be the right partner for us in our efforts to secure access to high-quality whey in the US market.”

Foremost Farms CEO Michael Doyle said: “We are excited about working with Arla Foods to create an international strategic partnership. By working with Arla, we can leverage their global food supply connections and innovation expertise with Foremost Farms’ diverse plant network and access to high-quality member milk.

“These factors combined will enable both companies to meet business objectives and provide whey solutions of the highest quality to the world.”

Arla Foods recently announced it will invest €36.3 million to build a new innovation centre in Nørre Vium, Denmark, which will focus on the development of milk and whey-based ingredients.

Construction of the new site will begin in 2019 and it is expected the 9,000 square-metre facility will become operational in 2021.