Irish dairy giant Glanbia, Dairy Farmers of America and Select Milk Producers have formed a joint venture to build one of the world's largest dairies.
The new plant, which will be built in New Mexico, US, will have the capacity to process over 1 billion litres of milk and produce 115,000 tons cheese annually. This amounts to half of Arla Foods' annual cheese production of 330,000 tons.
The dairy will also produce 7,500 tons of whey protein products a year.
The new $170 million plant will be half-owned by Glanbia. The Irish company will be responsible for day-to-day plant operations, marketing and sales.
The project is due to commence in the summer of 2005.