Vitalus Nutrition, Gay Lea Foods enter into JV for dairy processing in Manitoba, Canada

Canadian firms Vitalus Nutrition and Gay Lea Foods plan to jointly invest in new dairy processing in the province of Manitoba.

The two companies have entered a joint venture (JV) to process dairy ingredients and butter in Winnipeg.

Vitalus Nutrition president Philip Vanderpol said: "Vitalus is pleased to partner with Gay Lea Foods and Dairy Farmers of Manitoba to increase much-needed drying capacity while further developing the dairy ingredients industry, adding growth and new market opportunities for Canadian dairy."

According to the terms of the JV agreement, the companies will upgrade and modernise existing food manufacturing facility by increasing drying capacity in Western Canada, as well as new butter production to respond to market demands.

It will also provide an opportunity for Manitoba dairy farmers to supply raw milk for the new processing facility.

Dairy Farmers of Manitoba chair David Wiens said: "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."

The dairy farmers in the province can join Gay Lea Foods as member owners.