Pinpointing the growth targets

The goal is to become a top 10 player in the retail cheese market by growing its business beyond the deli section into the dairy aisle, where 92% of US cheese sales take place.

A newly launched big bet in the dairy aisle is Arla branded cream cheese, which has no artificial growth hormones, artificial ingredients or flavours.

"US consumers are increasingly looking for food products they can feel good about serving and consuming from a better-for-you standpoint," says head of Arla Foods USA, Don Stohrer Jr.

"This is exactly the position we have created for the Arla brand with its authenticity, transparency and great taste. It's an attractive position that doesn't now exist in the US dairy aisle or the cheddar segment. Our expectation is that the new cheddar products will create a halo effect for the cream cheese and other Arla branded products."

The joint venture will be owned 70% by DFA, which also holds the management role, 20% by Arla and 10% by the eight farmers who supply the milk. Thirty people are expected to be employed.

On-site construction will begin later this year, to start producing in the autumn 2017.