With a mutual ambition of leading the way in whey in the U.S., European dairy cooperative Arla Foods and U.S.-based dairy cooperative Foremost Farms USA announced that they are in advanced discussions about forming a strategic partnership.

The vision of a potential partnership is to increase the value of whey through innovation, by combining Foremost Farms' high-quality whey with Arla Foods' extensive ingredient know-how and strong sales channels, according to the announcement.

Recently, Arla Foods and Foremost Farms signed a memorandum of understanding formalizing the possibility of a future partnership.

Henrik Andersen, group vice president of Arla Foods Ingredients, said, “As farmer-owned cooperatives, Arla Foods and Foremost Farms USA share many of the same values, and both parties see a high degree of compatibility on visions and ambitions within whey. We are confident that Foremost Farms can be the right partner for us in our efforts to secure access to high-quality whey in the U.S. market.”

Michael Doyle, president and chief executive officer of Foremost Farms, added, “We are excited about working with Arla Foods to create an international strategic partnership. By working with Arla, we can leverage their global food supply connections and innovation expertise with Foremost Farms' diverse plant network and access to high-quality member milk. These factors combined will enable both companies to meet business objectives and provide whey solutions of the highest quality to the world.”

Further details of the plans of this strategic partnership were not disclosed.

Foremost Farms, headquartered in Baraboo, Wis., is a supplier of cheese, dairy products and ingredients to national and international markets, offering innovative solutions, technical services and customized products, ingredients and packaging for foodservice, food processing and distributor customers. The dairy cooperative is owned by 1,300 dairy farmers from a seven-state procurement area who supply their milk.

Arla Foods Ingredients, a fully owned subsidiary of Arla Foods Group, is a global leader in natural whey ingredients used for a wide range of categories, from bakery, dairy and beverages to clinical, infant and sports nutrition.

Arla Foods Group is an international dairy company owned by 11,200 dairy farmers from Denmark, Sweden, the U.K., Germany, Belgium, Luxembourg and the Netherlands, with brands like Arla, Lurpak and Castello. Arla Foods is also the largest manufacturer of organic dairy products.