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Glanbia signs joint venture agreement on milk processing with co-op

GLANBIA has signed a contract with its largest shareholder over a joint venture to take on its milk processing.

The company has agreed terms with Glanbia co-op to take on milk processing ahead of the removal of EU restrictions in 2015.

The contract had been expected but the deal is still subject to a co-op shareholder vote expected next month.

In a statement, Glanbia said the agreement “follows the announced signing of a memorandum of understanding between the two parties on 29 August and is a further step towards the completion of the transaction”.

Company chief executive John Moloney said his firm faced “very clear choices” about how it would deal with the removal of EU milk quotas in 2015.

"The proposed new Joint Venture is based on an existing, well invested and profitable international dairy ingredients business.

“This creates a strong platform from which to grow milk volumes and to capture the benefits arising from increased milk production and processing, post the abolition of milk quotas.”