LONGUEUIL, QUEBEC – The boards of directors of Agropur Cooperative and Dairytown Products Ltd., Sussex, New Brunswick, have agreed to merge the two companies. Dairytown is a regional processor of butter, skim milk powder and custom milk powder blends.

“This agreement is consistent with our desire to keep dairy processing assets in the hands of producers wherever possible,” said Serge Riendeau, president of Agropur Cooperative. “It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada.”

With C$3.8 billion in sales, Agropur has 31 plants throughout North America.

The companies said they should reach a final merger agreement in the next few weeks. Then Dairytown’s investors will be asked to vote on the proposed deal.