by Damián Morais
Glanbia cheese and whey plant expansion in Clovis, N.M., is expected to increase Twin Falls-based Glanbia Foods’ share of the American-style cheese market in the U.S. to 20 percent, from the current 17 percent, President and CEO Jeff Williams said in an interview.
“Overall, it will solidify our No. 1 position in American-style cheese,” he said. The category includes Cheddar, Monterey Jack, Colby and Colby Jack cheeses.
The New Mexico plant’s capacity will be increased by about one-third.
“We anticipate that when the cheese and whey products come on the market in a year, the demand will be sufficient to absorb that volume without any impact on pricing,” Williams said. “It further solidifies our position with our customers.”
Cheese and milk prices are down from a year ago on higher supplies and lower exports, he said, noting that Australia and New Zealand last year could not supply the export market sufficiently because of drought.
Glanbia is paying less for milk and receiving a lower price for its products, though “we like high prices just like the farmers,” Williams said. “We make more money when the market is high. But as soon as it gets too high, consumers back off.”
“It all starts with the milk,” he said. “These low prices are going to take some milk out of the system, and things will tighten up.”
Glanbia pursued the expansion in New Mexico because its Southwest Cheese joint venture commissioned the plant two and a half years ago with the intent to complete at least one expansion later, when the market was ready and local milk supply was growing, Williams said. Product lineups differ to an extent at Idaho and New Mexico plants, he said.
Glanbia Foods, a subsidiary of Ireland-based Glanbia plc, employs 640 in Idaho. Glanbia operates a cheese and whey plant in Gooding, a cheese plant in Twin Falls and a whey plant in Richfield. Southwest Cheese employs 260 in New Mexico. Williams oversees Glanbia cheese and whey operations in the U.S.
Glanbia plc and U.S. joint venture partner Greater Southwest Agency, in an April 14 release, said the $90 million Southwest Cheese expansion would boost plant capacity to just over 4 billion pounds of milk, 400 million pounds of cheese and 26 million pounds of “high value-added whey proteins.”
Source: MilkSource.com
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