Dairy Farmers of America has intensified its DairiConcepts joint venture with New Zealand dairy company Fonterra.

A plant in New Mexico belonging to the DFA will be expanded to produce milk protein concentrate and other dairy ingredients intended for use in the convenience foods industry, the two companies said. The DairiConcepts joint venture was set up to facilitate the manufacture and marketing of dairy ingredients.

Fonterra, New Zealand’s largest company since last year’s mega-merger, said that establishing a US source of milk protein was a vital stage in developing its North and South American operations.

“The extension of DairiConcepts will put us in a better position to satisfy increased demand for dairy ingredients in the US and beyond,” said Fonterra Chief Executive Craig Norgate.