Dale Farm has previously only supplied whey protein for use in sports nutrition products, so the new supply deal will enable it to break into new markets.
Arla’s partnership with Dale Farm comes just over three months since it announced plans to close its Trevarrian Creamery in Cornwall, putting the jobs of 37 members of staff at risk.
The loss of own-label cheese contracts, a three-year decline in volume and continued instability in foodservice demand due to the ongoing COVID-19 pandemic prompted the business to reassess the financial viability of the site.
Arla Foods Ingredients supply chain senior vice president Povl Friis said: “Arla Foods Ingredients is very pleased to have this new partnership with Dale Farm and the opportunities that it brings to grow our business and thereby add value for our farmer owners.
“The two companies share a common vision of how to develop high quality ingredients for the global markets and for Arla, making it a significant next step in our growing ingredients business.”
Chris McAlinden, Dale Farm group operations director, said the partnership would give the business the opportunity to grow its presence in the global whey protein market.
“Given that both Dale Farm and Arla are cooperatives, this partnership is good news for the dairy farmers that own both businesses,” said McAlinden.
“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.”
Meanwhile, Anglesey-based Mona Island Dairy is to create 100 new jobs as part of a £20m investment into a new cheese factory.
Due for completion in September this year, the 2,322.5m2 facility has been supported by a £3m grant from the Business Innovation and Tourism Escalator Scheme and will produce 7,000 tonnes of cheese a year.