Northern Ireland-based dairy co-op Dale Farm will supply Arla with whey protein concentrate as part of a major new contract.
The two dairy companies have partnered for the first time as part of a substantial supply partnership that has been announced today.
Dale Farm, which consists of 1,300 farmer owners, will supply Arla with whey protein concentrate to be used as an ingredient in infant formula and consumer health ingredients.
The NI-based company has until now mainly supplied whey protein for use in sports nutrition products, but the new contract will reposition it within the infant formula market.
Group operations director Chris McAlinden said the partnership represented an opportunity to grow the co-op's presence in the global whey protein market.
He added that it would also add value to the business for its farmer owners across the UK.
“Given that both Dale Farm and Arla are cooperatives, this partnership is good news for the dairy farmers that own both businesses," he said.
"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."
Arla Foods' supply chain vice president, Povl Friis added: “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.”
