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Consumer appetite for protein spurs on U.S. dairy expansion Editor’s note: Plants in Progress is a special segment spotlighting new facilities and expansion in the U.S. dairy sector — from initial groundbreaking to full operation and everything in between. By Alyssa Mitchell MADISON, Wis. — USDA recently reported that fluid milk sales in the United States showed their first year-over-year (YOY) gain in 15 years during 2024, rising 0.6% over 2023. The news was a welcome turnaround from a category that hasn’t seen a YOY sales increase since 2009. But perhaps it should come as no surprise as today’s consumers are hungry for protein — and what better place to find it than in U.S. dairy products? The appetite for U.S. dairy proteins — from milk and cheese, to yogurt and cottage cheese, to protein powders and extended-shelf-life (ESL) products — continues to spur innovation and expansion for manufacturers across the nation. In our biannual special segment, we take a closer look inside these facilities where companies are investing in building efficiencies, new product innovation and state-of-the-art equipment for making the products consumers crave. In this installment of Plants in Progress, you’ll read about companies that are formulating ESL products, investing in research and development space and increasing efficiencies in the flow of operations at their facilities. Many of these projects are multi-phase endeavors representing years of careful design and planning as well as hundreds of millions of dollars in investment. It’s a win-win-win — for consumers, for these communities and for U.S. dairy. Please read on for more on these Plants in Progress ... • Bongards Creameries, Perham, Minnesota
Bongards Creameries is nearing completion on a plant expansion announced in 2023 at its Perham, Minnesota, facility. The expansion/modernization project consists of a new 70,000-square-foot cheese cooler, new cheese vats, a new whey pasteurizer, a new permeate evaporator, a new milk intake and a new deproteinized whey dryer/permeate packaging system/permeate warehouse. Many facets of the expansion already are in operation. Equipment that is not being replaced also is being expanded by 30% to handle the additional volume the company will be running through the plant once the project is complete. Company officials say the new plant will be up and running by July and will ramp up to capacity for 5.5 million pounds of milk per day by Aug. 1. “This will allow us to bring on new members to supply the milk as well as allow existing members to expand their herds,” says Daryl Larson, president and CEO of Bongards Creameries. Total area of the upgrades mentioned above is approximately 150,000 square feet, which has more than doubled the facility’s capacity, Larson adds. • Byrne Dairy, Cortlandville and DeWitt, New York
Byrne Dairy earlier this year shared plans with the Town of Cortlandville, New York, for an expansion encompassing several phases with an estimated investment of $120 million. Byrne Dairy, based in Syracuse, New York, began expansion activities at its Cortlandville facility in 2022, which the company considered Phase 1, according to documents provided to a Town of Cortlandville Planning Board meeting held earlier this year. Additional phases will add more than 200 new positions and will encompass expanded space, new equipment, improved traffic and product flow, and more. Meanwhile, Byrne Dairy also recently unveiled its new research and development facility, the Byrne Innovation Center. Located next door to Byrne’s flagship plant in DeWitt, New York, the Byrne Innovation Center houses new product development, shelf-life testing, sensory evaluation, analytical testing and other services for Byrne’s customers. A grand opening for the Byrne Innovation Center was held in September. “The Byrne Innovation Center is a testament to our R&D team’s hard work in building a robust product portfolio for both extended-shelf-life and shelf-stable dairy,” says Byrne Dairy President and CEO Carl Byrne. “The new facility positions Byrne and our customers for continued success by improving products consumers already love and introducing new items.” Currently, Byrne’s R&D team is developing various beverages to support the growing demand for Byrne’s aseptic (shelf-stable) lines. The department also is continuing the Northeast Dairy Business Innovation Center grant-funded study of reducing sugar in lowfat flavored milk for schools. • Dairy State Cheese LLC, Rudolph, Wisconsin Progress continues on Dairy State Cheese’s project to convert manufacturing to 40-pound block Parmesan. The company, which is owned by Cheese Merchants, has fully commissioned the 40-pound block line and ceased producing 640-pound blocks last April. “Right now, we are in the process of doubling the capacity of our whey plant with new separation and filtration equipment. Additionally, we have begun making Parmesan and intend to increase Parmesan production through the first half of 2025,” says Mark Dahlstrom, president of Dairy State Cheese. “When complete, our expansion will allow us to increase our capacity to 3 million pounds of milk processed each day into the highest-quality Parmesan,” he adds. • Darigold Inc., Pasco, Washington Darigold Inc. officials are hoping for a mid-year opening for its new production facility in Pasco, Washington. When fully operational, the $600 million facility will process approximately 8 million pounds of milk per day from more than 100 dairy farms in surrounding communities. It will have the capacity to produce approximately 175 million pounds of butter and nearly 280 million pounds of powdered milk annually. • Duchess Dairy, Rural Retreat, Virginia Virginia Gov. Glenn Youngkin late last year announced that Duchess Dairy will invest approximately $895,000 to expand its dairy processing operations in Wythe County. The family-owned and operated dairy manufacturer plans to grow its operation by adding a production line of churned butter in addition to its current line of premium bottled milk. “We would like to thank Gov. Youngkin, the state of Virginia, Wythe County and the town of Rural Retreat for their assistance with this project, as well as our many loyal customers for the purchase of our products,” says James Huffard III, president of Duchess Dairy. “This expansion project will help us meet growing consumer demand by increasing operational efficiencies, increasing production capacity and adding a production line of fresh churned butter.” The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Wythe County and the town of Rural Retreat to secure the project for Virginia. Gov. Youngkin approved a $25,000 facility grant from the Agriculture and Forestry Industries Development Fund, which Wythe County will match with local funds. • fairlife LLC, Webster, New York
Construction is running on schedule for fairlife’s new 760,000-square-foot state-of-the-art facility in Webster, New York. Recently, fairlife officials Tim Doelman, CEO; Nicholas Adamson, chief technical officer; and Michael Sanders, civil and infrastructure project manager, were on-site as one of the largest cranes on the East Coast worked to put the pieces in place for what will be an automated storage and retrieval system. The system is designed to efficiently deliver fairlife’s products to consumers nationwide, reflecting the company’s commitment to innovation, quality and customer satisfaction, officials say. The Town of Webster was strategically chosen by The Coca‑Cola Co. and fairlife teams for its proximity to the state’s best-in-class dairy cooperatives in the Rochester and Niagara regions, officials add. “We are thankful for the support of the Town of Webster and all our valued partners that make this possible,” fairlife says. Announced in May 2023, the new facility will serve as fairlife’s flagship Northeast location. The company plans to begin production in the fourth quarter of 2025. • Galloway Co., Neenah, Wisconsin
Galloway Co., a leader in premium dairy ingredients, earlier this year held a ribbon-cutting and grand opening to celebrate the completion of a major expansion to its production capabilities at its facility in Neenah, Wisconsin. The addition of a custom-built evaporator nearly doubles the United States’ total capacity for industrial sweetened condensed milk. The expansion comes at a critical time, relieving a highly constrained market for premium concentrated dairy ingredients in the United States, company officials say. The $70 million expansion — which includes the new evaporator, new logistics space and new office space — allows the company to serve existing clients with the same premium quality ingredients they’ve come to rely on, while also welcoming new customers for the first time in four years. “Over the last four years, we’ve seen growing constraints from the bakery and confectionery markets, with extended lead times and maxed-out production capacities,” says Mike Hasler, director of industrial sales, Galloway Co. “This expansion ensures we can not only meet the demand of our existing customers but also welcome new business.” With the addition of the second evaporator, Galloway Co. is building redundancy into its production process, minimizing the risk of service interruptions for clients. The new system also will enable greater customization of products, allowing the company to meet the needs of clients of all sizes — from full tanker trucks to smaller batches packaged in totes and 5-gallon pails. The expansion also sets new industry benchmarks in capacity, operational efficiency and quality. The upgraded system includes high-efficiency motors and precision-engineered valve systems, with a fully automated homogenization process, advanced lactose seeding technologies and state-of-the-art cooling systems. These updates minimize energy consumption and reduce environmental impact, while advanced quality control measures ensure consistent performance and accuracy. • Great Lakes Cheese Co., Franklinville, New York Great Lakes Cheese Co. has completed construction and is now operating a new cheese manufacturing and packaging plant in Franklinville, New York. With a capital investment exceeding $700 million, the project is both the largest infrastructure investment in the company’s history and the largest privately funded project in New York state, officials say. The site now employs 500 employee-owners, nearly half of whom were employed by the company in its Cuba, New York, facility. The Cuba facility officially ceased operations at the end of 2024. The company still is evaluating possible future uses for the site, officials say. • Hightail, Plainfield, Iowa
Hightail, a dairy farm in Hightail, Iowa, that currently makes ice cream out of a nearby assisted living facility, is adding capacity at its farm in order to introduce cheese curds to its product lineup. Owner Natalie Paino says it was her dream to take over her family’s dairy farm, which she is now making into a reality. She is in the process of obtaining a cheesemaking license to begin selling product while she continues to make and sell ice cream at the assisted living facility where her grandmother resides in nearby Sumner. Paino notes federal and state grants helped to provide part of the funding to bring in shipping containers to the farm to allow for milking of its approximately 53 registered Holsteins, as well as cheesemaking and cold storage capacity. • Hiland Dairy Foods Co., Tyler, Texas
Hiland Dairy Foods Co. last fall announced the expansion of its Tyler, Texas, operations, reinforcing the company’s long-term commitment to the community and the local economy. The investment will add 90,000 square feet to the existing facility at 200 Fuller Ave., which will include state-of-the-art processing, filling, casing, palletizing, load-out, storage areas and a new laboratory. The expansion is expected to be complete by the first quarter of 2026. “This expansion is more than just growth in our physical footprint; it’s a commitment to the future of Tyler,” says Rick Beaman, president of Hiland Dairy. “We deeply appreciate the support we’ve received from the city, and we’re excited to continue providing good-paying, stable jobs for this community for years to come.” • HP Hood, Winchester, Virginia An expansion at HP Hood’s Winchester, Virginia, manufacturing facility is nearly complete. A new filler was installed and went into production in December, and the new, expanded warehouse and processing room will be in service during the first quarter of this year, officials say. The plant will encompass 442,000 square feet when the expansion is complete. HP Hood previously announced it will invest more than $83.5 million in the project, which includes upgrades to production and packaging equipment as well as construction of additional warehouse and cooler space. HP Hood’s expansion will provide increased production capacity that will fund technology allowing Hood to offer new products, the company says. • Idaho Milk Products, Jerome, Idaho
Idaho Milk Products is making significant progress on its state-of-the-art ice cream plant in Jerome, Idaho, which remains on schedule and on budget for its highly anticipated 2026 launch, officials say. With the support of trusted partners and its own team of industry experts, thorough planning and project discipline have allowed construction to move forward smoothly, ensuring steady development of key infrastructure, including piping, electrical systems and structural elements. The plans unveiled last year include the construction of a $200 million dual ice cream and powder blending facility. The company’s entry into the ice cream business comes with a focus on premium indulgent and functional recipes in both bulk and novelty formats, while blending capabilities will support the ice cream business and create capabilities to provide custom formulations to both existing and new customers, officials say. Beyond plant construction, Idaho Milk Products is preparing to expand its team. In the coming months, a range of job opportunities will become available, including roles such as ice cream sales manager, powder blending sales manager, ice cream R&D scientist and various positions in operations to support the new facility. • Lactalis USA, Tulare, California; Buffalo, New York; and Belmont, Wisconsin Lactalis USA late last year announced a $55 million investment in its Tulare, California, facility that will allow the company to significantly increase the volume of Président Feta cheese produced in the United States. The new 38,000-square-foot manufacturing line will bring additional capacity for Lactalis USA Feta production in the United States at its facilities in Tulare and Belmont, Wisconsin. The project creates 20 full-time positions at Tulare along with 100 temporary or contract positions during construction. The construction timeline spans from 2023-2027, with the full line expected to become partially operational this spring. When completed in 2027, Lactalis USA will have increased its U.S. Feta production capacity to address current and future customer and consumer demand. The new production line at the Tulare facility will be outfitted based on a complete 3D ergonomic analysis to support worker well-being and safety, in addition to automated air flow control and in-line production. Meanwhile, Lactalis USA recently opened the Culinary & Sensory Institute in Buffalo, New York, a facility designed to help expand its culinary expertise in multiple channels. The new institute serves as Lactalis’ North American culinary and sensory channel operations and aims to foster innovation, enhance customer and consumer experiences with the company’s dairy products, and test product quality. The Culinary & Sensory Institute comprises commercial and residential kitchen spaces where Lactalis chefs can host customers and explore ways to expand menu and retail offerings using equipment found in restaurants and home kitchens. The institute represents a $2 million investment in Buffalo, where the company has invested more than $111 million since 2020, including projects to modernize its manufacturing facility and increase its production of Galbani Mozzarella, Ricotta and whey powder. • Leprino Foods Co., Lubbock, Texas
Leprino Foods Co. earlier this year celebrated the opening of the first phase of its new 850,000-square-foot state-of-the-art manufacturing facility in Lubbock, Texas. The plant will produce Mozzarella and nutrition products that will feed and nourish families around the world. “This year marks a significant milestone for our company — our 75th anniversary. It’s not only a celebration of our remarkable journey, but it is also a moment to envision our future, a future that includes Lubbock,” Leprino Executive Chairman Dan Vecchiarelli says. “The plant will be supplied by regional dairies and roughly 200 milk trucks per day.” Approximately 300 full-time employees will work at the 24/7/365 facility. With the second phase of the project kicking off later this year, hiring will continue — with a total of approximately 600 jobs by 2026. Positions will range from production operations and maintenance to technical engineers and human resources. The total annual payroll at the facility will be more than $33 million with competitive wages, officials say. • Maola Local Dairies, Philadelphia Maola Local Dairies, owned by Maryland & Virginia Milk Producers Cooperative Association (MDVA), purchased an ultra-pasteurized dairy plant in Philadelphia last spring. Since then, numerous improvement projects have been implemented including the installation of a new quart filler and the incoming installation of a lactase injector. The acquisition generated new opportunities to bring sustainable milk products into Pennsylvania, including Weis Markets, company officials say. Maola Philadelphia is an ultra-pasteurized product plant focused on quality, customer service and sustainability together with customers, employees and family-owned farms. The plant produces regular and flavored milks, creams of various fat levels, half-and-half, eggnog and ice cream mixes. The plant, which has more than 170 employees, offers packaging in gable top pint, quart and half-gallon containers, portion control cups and 2.5-gallon bags. • Nelson-Jameson, Fairview, Pennsylvania Nelson-Jameson earlier this year announced the purchase of a 45,000-square-foot warehouse in Fairview, Pennsylvania. The new location marks a significant step in the company to enhance its capabilities and more efficiently serve customers and partners in the Northeastern United States. The Fairview location will be one of five Nelson-Jameson distribution centers across the country, reinforcing the company’s core mission of delivering a broad range of products and services that help companies uphold the highest standards of food safety, quality and compliance. The facility, located 12 miles from Erie, Pennsylvania, is expected to be fully operational sometime this summer. Key upgrades at the new distribution center include a refreshed exterior featuring newly paved employee and visitor parking lots. The climate-controlled warehouse will provide 1.1 million cubic feet of storage capacity and accommodate more than 3,800 pallet positions. Approximately 8,000 square feet of space will be allocated in the future for a new service and repair center. Nelson-Jameson expects to hire up to 20 full time employees. “Nelson-Jameson is committed to delivering exceptional service and prioritizing food safety for our customers in the Northeast,” says Mike Rindy, president of Nelson-Jameson. “The new Fairview distribution center reflects our continued investment in the Northeast and our unwavering dedication to supporting our customers’ success.” The distribution center sits on an 8.4-acre lot with an adjacent 20-acre parcel reserved for future expansion. • Orbis Corp., Greenville, Texas
Orbis Corp., a provider of reusable packaging solutions for industries including dairy, recently announced the opening of its new manufacturing plant in Greenville, Texas. The plant features 420,000 square feet of manufacturing space and 240,000 square feet of warehouse space, producing reusable packaging such as totes and pallets that store, move and protect product in the supply chain. With sustainability in mind, Orbis fully repurposed and modernized an existing facility. The phased installation will include 16 presses in 2025, with room for future expansion. The plant is expected to be in full production by this spring and is estimated to create more than 190 new jobs within three years. It also plans to hold a grand opening in the spring. “We’re excited to see this new plant come to life. This project brings us much needed capacity and space to support the growing needs of our customers who are turning to reusable packaging to add supply chain efficiency and sustainability,” says Norm Kukuk, president of Orbis Corp. “It enables us to drive the further use of reusable packaging in the circular economy, better serve our customers by increasing our production capacity and expand our geographic reach to deliver to customers faster.” • Oregon State University Extension, Corvallis, Oregon
Oregon State University (OSU) Extension is nearing completion on a renovation of a former school theater that is has revamped to accommodate a dairy pilot plant and creamery. Lisbeth Goddik, OSU Dairy Processing Extension specialist, says the plant should be up and running later this month, with an official inauguration planned for April 11. “We’d like the pilot plant to be a showcase for the next generation in manufacturing,” she says. Total area of the creamery itself is approximately 4,500 square feet, with the addition of a quality control lab as well as a teaching lab for students not included in that estimate. The Beaver Classic Creamery ice cream scoop shop will be selling ice cream, cheese and other products produced by students of the College of Agricultural Sciences. • Renard’s Cheese, Algoma, Wisconsin
Renard’s Cheese, a fourth-generation, family-owned and operated cheesemaking business in Door County, Wisconsin, in 2023 broke ground on a new production facility on County Highway S in Algoma, Wisconsin. The 50,000-square-foot expansion, which encompasses three phases, will include a new production facility as well as an on-site exact-weight cut-and-wrap operation and warehouse. “Phase 1 and Phase 2 are still wrapping up; there have been some delays on the final details,” says Ann Renard, owner and president of Renard’s Cheese. “Due to these delays, chances are we will not be breaking ground on our final phase in 2025. Currently, it is looking like late 2026 before we will be able to begin the third phase of our expansion. We are eager; however, the significant delays on the first two phases delayed the progress of our third phase. Long lead times on items also play into this decision.” “We recently changed our focus to filling this capacity as well as the implementation of a new inventory management system to enhance our food safety and traceability. We are also finalizing our SQF certification, which includes additional process changes and additional employee training. These are all necessary steps to ensure the sustainability of our company and a smooth transition when the final phase is complete,” she says. • Schreiber Foods, Carthage, Missouri Schreiber Foods late last year announced a significant expansion in Carthage, Missouri, that will create new jobs, boost local economic growth and enhance Schreiber’s production capabilities so it can continue to be an essential ingredient in its customers’ success. The expansion includes construction of a new 168,000-square-foot production facility that includes state-of-the-art technology. The $211 million investment is expected to create 150 new jobs. In addition, Schreiber is pursuing an opportunity that would increase the size of the project. “We’re thrilled to continue our growth in Carthage,” says Ron Dunford, president and CEO of The project will enhance Schreiber Foods’ process cheese capabilities in the United States and support the company’s ongoing efforts to partner with customers and meet increasing demand. Mobilization of construction is expected to begin soon, with completion expected in 2027. • Somic Packaging, Inver Grove Heights, Minnesota
Somic Packaging Inc. late last year completed the purchase and renovation of a 48,000-square-foot building at the InverPoint Business Park in Inver Grove Heights, Minnesota. The site now serves as the company’s new headquarters as it recently marked 10 years since beginning operations. Somic Packaging CEO Peter Fox notes that in addition to now having the ability to assemble all new North American machines and with room for future growth, the move retains accessibility to several major highways and close proximity to nearby Minneapolis International Airport. “We spent many hours in the past two years, from looking at possible sites and buildings to designing everything inside and examining our needs for the future,” he says. In addition to the expansive manufacturing floor and larger inventory area for the warehousing of critical parts and consumables, the building includes more than 10,000 square feet of administrative space and 8,000 more square feet on the second floor for future office requirements. • Tillamook County Creamery Association, Decatur, Illinois
Tillamook County Creamery Association (TCCA) earlier this year began producing ice cream at its manufacturing facility in Decatur, Illinois. The Decatur facility is TCCA’s first owned and operated manufacturing facility outside of Oregon and is the only facility solely dedicated to ice cream production. It previously was owned by Prairie Farms, which also used it for ice cream production until it was closed in early 2022. “Over the next few months, we are continuing to fine tune equipment and plant processes,” says Jenna Cerruti, corporate communications manager-external for TCCA. “We are also working on finishing touches to our team spaces around the building, as well as the beautification of the entire property surrounding the plant. In addition to the construction happening at the plant, Cerruti notes TCCA has been strengthening ties in the Decatur community with local event sponsorships and employee volunteering at local nonprofits. • Valley Natural Beverages, Bakersfield, California
Valley Natural Beverages, a state-of-the-art extended-shelf-life, aseptic and ultra-high-temperature dairy bottling facility located in Bakersfield, California, is nearing completion of phase one of its facility construction. The first phase of the project encompasses 200,000 square feet, and the full build-out is expected to be north of 400,000 square feet. The location also provides the facility access to water, power and wastewater. A division of California Dairies Inc. (CDI), the creation of Valley Natural Beverages, co-owned by more than 300 dairy families located in the heart of California, first was announced in 2021. The project is located in northern Kern County, a region with significant milk production but no local processing facilities. Not only will this investment significantly reduce the transportation distances of milk produced in Kern County, it also will further demonstrate CDI’s commitment to sustainable solutions by incorporating renewable energy sources and waste conservation as key priorities in the facility and operational design, company officials say. CDI officials note the company has its dedicated staff in place and is preparing to ramp up production very soon. A ribbon-cutting event also is planned for the near future. • Valley Queen Cheese, Milbank, South Dakota
After three years of planning and construction, Valley Queen Cheese officially launched its new cheese plant in Milbank, South Dakota, in December. The $230 million project increased the plant’s processing capacity from 5 million pounds of milk to 8 million pounds per day. The new production line already is producing first-pass quality cheese, and production is expected to ramp up further as additional milk becomes available in the region. “Successfully completing this project is a testament to the teamwork and dedication of all the departments and contractors involved,” says Nathan Bass, vice president of operations, Valley Queen Cheese. “This was a challenging time to undertake a project like this, but seeing the first box of cheese roll off the line validated the countless planning meetings and long days for everyone involved. I couldn’t be prouder of our team for stepping up to face the challenges throughout the past three years and achieving first-pass quality cheese as quickly as we have.” Founded in 1929 by two Swiss immigrants, Valley Queen Cheese specializes in American-style cheeses and various other dairy products. • Wells Enterprises, Dunkirk, New York
Wells Enterprises is on track to begin producing ice cream this fall at its state-of-the-art manufacturing facility in Dunkirk, New York. The $425 million project will increase capacity of its current ice cream production, create new capabilities for future innovation and add a first-of-its-kind chocolate manufacturing facility within the plant to use for ingredients in its ice cream and novelty products. The investment also will enable the company to add 270 new jobs and retain approximately 380 full-time jobs. It will be one of the largest single private investments ever made in Chautauqua County. • Wisconsin Whey Protein, Darlington, Wisconsin Last month, Wisconsin Whey Protein Inc. announced is has started construction on a new state-of-the-art whey protein isolate (WPI) plant at its Darlington, Wisconsin, location. The new plant will have the capacity to produce 13 million pounds of WPI per year and 14.1 million pounds of edible grade whey protein concentrate 34% (WPC34). When completed, Wisconsin Whey Protein’s Darlington and Turtle Lake locations will have a total annual WPI production of 22 million pounds. “Whey protein isolate has excellent protein quality and is a perfect solution to meet the growing consumer demand for protein-fortified food products,” says K Kachadurian, founder and CEO of Wisconsin Whey Protein Inc. “This additional WPI capacity will position Wisconsin Whey Protein as a leading supplier in this growing whey protein isolate market segment.” Stainless Technologies, a sister company of Wisconsin Whey Protein, has completed the engineering and design, and started fabricating the equipment, officials say. Groundbreaking on the precast building will begin in April and is expected to be completed in July. Stainless Technologies will begin the installation of the WPI processing equipment on a turn-key basis in August and will complete in the first quarter of 2026. CMN |
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