Arla Foods has signed a major supply contract with dairy company Dale Farm, for an undisclosed sum.
Under the new agreement, Dale Farm will supply whey protein concentrate for Arla’s global ingredients business, which will be used as an ingredient in infant formula and consumer health ingredients.
According to Arla, the partnership has been launched to meet “increasing global demand” for Arla Foods Ingredients speciality products and to continue to increase the value of its whey ingredients business through innovation.
“Arla Foods Ingredients is very pleased to have this new partnership with Dale Farm and the opportunity it brings to grow our business and thereby add value for our farmer-owners,” Arla Foods Ingredients supply chain senior vice president Povl Friis said.
“The two companies share a common vision of how to develop high-quality ingredients for the global markets and Arla, making it a significant next step in our growing ingredients business.”
This is the first time the two dairy cooperatives have partnered as part of a major supply contract.
Dale Farm group operations director Chris McAlinden added: “This partnership with Arla represents an excellent opportunity to grow our presence in the global whey protein market, adding value to our business for our farmer-owners.
“Given that both Dale Farm and Arla are cooperatives, this partnership is good news for the dairy farmers that own both businesses. Through working together, we are utilising our combined expertise and technology to bring a high-quality specialist ingredient into the global whey protein market, creating future opportunity for growth in export markets.”