Green Meadows, Arla Foods to form partnership
March 03, 2009
by Keith Nunes
HULL, IOWA — Green Meadows Foods L.L.C., the owner of a new cheese manufacturing facility in Hull, has signed a letter of intent to enter into a partnership with Arla Foods, Denmark, to provide Arla with milk and whey raw materials. In return, Arla will market and sell all products produced under the partnership.
"We feel this strategic move to partner with Arla Foods will position us well into the future as a leading milk processor in the important I-29 corridor," said Sjerp Ysselstein, president of Green Meadows Foods. "By combining our state-of-the-art operation with Arla’s process technology and marketing abilities, we will achieve our goals to move away from the commodity whey business. In addition, it provides a roadmap to accomplish our capacity expansion plan."
The Hull facility currently may process 2.5 million lbs of milk per day. Green Meadows’ expansion plans will increase the processing capacity to 5 million lbs per day.
"Applying our global whey concepts to the American market and establishing a local partnership will provide significant new opportunities for us," said Henrik Anderson, senior vice-president of Arla Foods. "The American market is approximately 50% of the global whey protein market and we are now entering with a strong partner."