British farmer-owned dairy co-operative First Milk and cheese supplier Adams Foods have completed their long-term, strategic, cheese supply partnership.
The move comes after the deal received approval from the UK's Office of Fair Trading and Irish Competition Authority.
The partnership, which will commence integration from 12 March, seeks to develop a secure, efficient and fully integrated supply chain for hard cheese in the UK retail, foodservice and wholesale sectors.
It will secure a long-term outlet for the majority of First Milk's hard cheese; consequently, First Milk will receive a competitive price for the cheese, which is in line with its strategy to deliver a sustainable future for its farmers.
In addition, First Milk will be able to invest in its creameries, while focusing on developing brands in lifestyle nutrition, foodservice (excluding hard cheese) and exports.
The partnership will strengthen Adams Foods' position for both British and Irish cheeses in the UK, with a turnover of around £500m.
First Milk CEO Kate Allum said that the partnership with Adams Foods is directly in line with the company's objective of adding value to its members' milk and in doing so delivering a sustainable future for them.
"It will provide us with secure and competitive returns for our cheese and allow us to invest further in our Lake District and Haverfordwest creameries."
Adams Foods CEO Ian Toal said, "Adams Foods' strategic goal is to be the leading supplier of cheese in the UK through guaranteeing our customers a secure, efficient and traceable supply of high quality British and Irish hard cheese.
"Our partnership with First Milk will enable us to create a shorter and more effective supply chain."
