Partnership Finalized for Michigan Production Facility
In an era where more production capacity is desperately needed, there's more coming to the state of Michigan.
Glanbia plc, Dairy Farmers of America Inc. (DFA) and Select Milk Producers Inc. have finalized a joint venture partnership to build, supply and operate a new large-scale cheese and whey production facility in Michigan, which is now expected to be commissioned in the second half of 2020.
Glanbia will hold 50% of the equity of the new facility with DFA and Select holding the balance. Glanbia will be the operational, technical and commercial partner in the joint venture, which mirrors the arrangement the partners have in the Southwest Cheese facility in Clovis, New Mexico. In addition, the partners are pleased to announce Michigan Milk Producers Association (MMPA) will continue to participate in the project as a strategic milk supplier to the new facility.
On completion in 2020, the new facility will process 8 million pounds of milk per day into about 135,000 metric tons of cheese and whey products annually for U.S. and international markets. Pre-engineering and site selection for the project are well advanced and the new facility will be a strategic outlet for the large scale, growing milk pool in the state of Michigan.
"We are delighted that we have concluded an agreement on the Michigan Joint Venture with our existing partners in Southwest Cheese, to build, supply and operate this new facility," says Brian Phelan, Chief Executive Officer of Glanbia Nutritionals. "The partners have a strong working relationship that has evolved over many years and a strong track record working together to successfully run large-scale cheese and whey facilities. We are also delighted that MMPA will continue to be closely associated with the project as a valued strategic milk supplier. We look forward to progressing at speed now to build and commission the new facility.”
“We are excited to extend our partnership with Glanbia and Select Milk Producers to build this new facility in Michigan,” says Greg Wickham, chief financial officer of DFA. “Michigan is ideally situated for continued milk production growth and has ideal proximity to serve not only major U.S. markets, but also the global marketplace. Once complete, this facility will serve as a home for our members’ milk in Michigan and complement our existing facility in Cass City, Michigan.”