AVONMORE Foods will invest $20 million (£12.6 million) in a major expansion of its cheese and food ingredients production facilities in the United States. The expansion of the cheese facilities in Idaho will boost Avonmore's production from 60,000 tonnes to 80,000 tonnes - equivalent to the entire output of the Irish cheese industry.

The investment in the cheese business will involve expansion of two processing plants at Gooding and Twin Falls in Idaho, and is aimed at meeting increased demand from the US food service industry. Avonmore is now the largest producer of cheese and whey-based food ingredients in the north western US.

The group is planning to build a state of the art whey ingredients facility adjacent to the Gooding cheese plant to complement existing facilities at Richfield, Idaho. Products from this plant are used in the production of infant formula, nutrition foods, beverages, ice cream and other goods.

Avonmore's operations in Idaho currently process 150 million gallons of milk a year, almost one third of Avonmore's total milk production. Milk supply in Idaho has grown by 25 per cent in the past two years and is projected to grow further this year, the company says.