Island dairy farmers who supply milk to Summerside's Amalgamated Dairies Limited voted in favour of a new business deal with New Brunswick's Dairytown on Friday.
The co-op is owned by 192 P.E.I. farmers while Sussex's Dairytown has close to 200 members.
Four years ago, the two dairies started collaborating with a cheese making by-product. ADL sends whey to Dairytown where it's turned it into powdered whey protein. Then both businesses share the profits.
Amalgamated Dairies' CEO Jim Bradley said the new agreement is not a merger and the P.E.I. dairy will remain an independent, producer-owned cooperative.
He said the two dairies will combine resources and assets and share profits at the end of each year.
Bradley said both dairies will maintain their own brands.