Vitalus Nutrition and Gay Lea Foods have entered into a joint venture to invest in a new dairy processing plant in Manitoba, Canada.
The companies will process dairy ingredients and butter at the plant in Winnipeg, Manitoba.
The joint venture also includes plans for major upgrades to modernize an existing food manufacturing plant and expand butter production to meet the growing demand.
Gay Lea Foods president and CEO Michael Barrett said: “Gay Lea Foods is excited by the opportunities that the joint venture brings to both the Co-operative and Canadian dairy, through increased processing capacity for ingredients and butter while extending our open membership to farmers in Manitoba.”
The Vitalus-Gay Lea Foods joint venture is also expected to offer a new market opportunity for milk from Manitoba dairy farms.
Dairy Farmers of Manitoba will supply the raw milk for the new processing facility to be established by the two companies.
Besides, dairy farmers in the province will be allowed to join Gay Lea Foods as member owners.
Dairy Farmers of Manitoba chair David Wiens said: “Dairy Farmers of Manitoba is pleased to provide milk for this joint venture.
“This new opportunity and our commitment to working together to increase processing capacity in Manitoba will help ensure the continued sustainability of the Canadian dairy industry today and for future generations.”
Vitalus is a major supplier of customized dairy ingredients for the world’s food, beverage and nutraceutical industries. Its products are used in applications such as baking, confections, dairy products, snack foods, infant formula, protein drinks and nutrition bars, among others.
Gay Lea Foods is Canadian owned and operated daily co-operative, with members on more than 1300 dairy farms producing 35% of Ontario’s cow milk and over 4000 members.
In May, the company announced acquisition of Black River Cheese Company to further strengthen its presence in the Canadian cheese sector.
