Dairy farmers who supply milk to Summerside's Amalgamated Dairies Limited are voting on a new business deal Friday with New Brunswick's Dairytown.
ADL is a co-op owned by 192 P.E.I. farmers. Management is asking the farmers to approve a business-sharing agreement.
Four years ago, the two dairies started collaborating with a cheesemaking by-product. ADL sends whey to Dairytown where it's turned it into powdered whey protein. Then both businesses share the profits.
ADL CEO Jim Bradley said the two dairies working together can make otherwise unworkable projects profitable.
"There are a number of growth opportunities and investment opportunities that both of us have recognized that exist out there, and I think it would be fair to say that perhaps on our own, individually they might be larger than we would have had resources to pursue," said Bradley.
"The smaller you are, you lack the ability to purchase perhaps at the best price that a larger operation would. You know, you run into challenges when it comes to providing market distribution for your product in the marketplace."
Bradley said this is not a merger. ADL will remain an independent, producer-owned cooperative.
He did not want to give details of future plans until after the vote.