Norwegian dairy group Tine has revealed it will invest €77 million on a Jarslberg cheese plant in Ireland in a partnership with Dairygold.
It is hoped the site, which was initially announced last year, will have the capacity to produce 20,000 tonnes of Jarlsberg a year. Tine said it is expanding operations to boost sales outside of Norway.
The mild, semi-soft cheese – similar to Swiss Emmental – accounts for a large part of Tine’s turnover, and represents 90% of Norway’s cheese exports to the US and Canada, the Oslo-headquartered company said last year.
Tine’s board said that when Norway’s export support scheme is phased out by 2020, exporting the cheese will be unprofitable. Jarlsberg for domestic consumption will continue to be produced in Norway.
Tine’s new facilities will be located in an area adjacent to Dairygold’s plant in Cork. The two companies have collaborated together for ten years, with Tine currently renting production capacity for Jarlsberg.
Tine said that Dairygold is “investing significantly” in the site and that it chose to base the production site in Ireland because of the quality of raw materials and high levels of agricultural expertise in the country.
Dairygold chairman James Lynch said: “Jarlsberg is a world-class cheese and we are looking forward to supporting Tine in its efforts to increase international sales.
“I am confident that the proposed new Jarlsberg plant in Cork is only the start of the next phase of a long and fruitful collaboration between our two farms.”
Tine said the project is still in planning phase and that some public approvals remain.
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