FDBusiness.com

TINE, Norway’s largest farmer-owned dairy co-operative, is to invest €77 million in a dairy with the capacity to produce 20,000 tonnes of Jarlsberg cheese a year. The goal is to secure and strengthen Jarlsberg sales outside of Norway as export supports are phased out in 2020. This will make export of Jarlsberg from Norway unprofitable.

“Jarlsberg for the Norwegian market will continue to be produced in Norway with Norwegian milk. Now we have developed a solution for the future , and we are implementing the project to secure and increase sales of Jarlsberg outside Norway,” says Hanne Refsholt, chief executive of TINE.

She continues: “TINE has considered different opportunities for export without subsidies, and concluded that exports from Norway in today’s market situation will in no way be profitable. It is important for TINE to take care of the values the Norwegian farmer has built up internationally. The Jarlsberg brand accounts for a significant part of TINE’s international turnover of NOK2.9 billion.”

TINE’s new facility in Ireland will be located in an area directly adjacent to Dairygold Co-operative’s existing plant at Mogeely in Cork. TINE has been collaborating with Dairygold for over 10 years.

The new facility will rent a host of facilities with Dairygold, such as heating, water, electricity, as well as waste filtration and shared environmentally friendly emissions. As part of the project, Dairygold will also invest significantly.

“TINE has chosen to add this production in Ireland because of the quality of raw materials and high agricultural expertise in the country. At the same time, Ireland has a strong commitment to producing food in an environmentally friendly manner. Jarlsberg is characterized by good craftsmanship all the way from the individual farmer through the mill at the dairy until the product is in store, a secret Norwegian ingredient and a unique taste,” points out Atle Kjol Jacobsen, executive vice president of TINE International.

“Jarlsberg is a world-class cheese and we are looking forward to supporting TINE in their 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 farmer-owned businesses,” says James Lynch, chairman of Dairygold.

The project is still in the planning phase and some public approvals remain to be attained.