Denmark-based international cooperative Arla Foods and the Dairy Farmers of America (DFA) have teamed up to build a $58 million dairy plant in Western New York for cheddar cheese production. In their first collaboration ever, the two farmer-owned cooperatives plan to explore opportunities to build premium-quality standards in the cheddar category by providing American consumers with more cheese options free from growth hormones and artificial ingredients.
“Together with DFA and eight of their farmers, who will supply the raw milk, we will explore the opportunities in building premium quality standards into the cheddar category through the Arla brand. Adding cheddar to our US portfolio will make us more attractive to the retailers and help increase the sales of our European products made from owner milk,” says Peder Tuborgh, CEO of Arla Foods.