Lactalis USA Invests $75 Million in New York Dairy Facilities

News Summary

Lactalis USA plans to invest $75 million to upgrade its dairy processing plants in Buffalo and Walton, New York, which will retain over 800 jobs and create 50 new positions. The investment aims to modernize operations and increase production capacity in response to rising consumer demand for dairy products. With significant enhancements planned for both facilities, the company reinforces its commitment to the local agricultural economy and positions itself for future growth in the dairy sector.

New York – Lactalis USA has announced plans to invest $75 million to upgrade its dairy processing facilities in Buffalo and Walton, New York. This significant investment is expected to retain over 800 jobs while creating an additional 50 new positions within the company’s operations in the state. The upgrades are set to enhance productivity in the dairy sector and cater to increasing consumer demand for dairy products.

The investment breakdown includes $60 million for the Buffalo plant and $15 million for the Walton facility. The renovations aim to modernize processing capabilities and expand the production capacity to meet rising market needs. New York is recognized as the fifth most dairy-producing state in the U.S., generating 16.1 billion pounds of milk annually and leading in the production of yogurt, cottage cheese, and sour cream.

In conjunction with this announcement, New York Governor Kathy Hochul expressed support for the project, emphasizing the importance of the dairy industry to local communities and the state’s economy. The expansion is seen as a vital step in preserving jobs in the region while stimulating new employment opportunities. Lactalis processes more than 800 million pounds of milk each year sourced from approximately 236 local dairy farmers, reinforcing its commitment to supporting the state’s agricultural economy.

Buffalo Plant Upgrades

The Buffalo plant will undergo extensive renovations that include the installation of six large vats, an advanced cheese belt, separators, silos, and a robotic palletizer. These enhancements are projected to increase the annual production of mozzarella and provolone cheese by an impressive 37 million pounds. The Buffalo facility is a significant site for the production of Galbani brand cheese products, making these improvements crucial for maintaining Lactalis’s competitive edge in the dairy industry.

Walton Facility Enhancements

Conversely, the Walton plant, which has been producing Breakstone’s sour cream since 1882, will receive a $15 million investment dedicated to automating production lines for sour cream and cottage cheese. Planned improvements at this facility include the installation of new fillers, HEPA air filtration systems, advanced lab equipment, new roofing, and boiler upgrades, which collectively promise to lead to a 30% increase in output. These changes are expected to create more than 20 new jobs at the Walton site, strengthening Lactalis’s position in the cottage cheese business.

Financial Support and Future Prospects

To further support these initiatives, the Empire State Development agency has offered tax credits amounting to $750,000 for the Walton upgrade project and $550,000 for the Buffalo renovations. These financial incentives are designed to encourage job retention and create new employment opportunities, underscoring the state’s commitment to fostering growth within the dairy sector.

This latest investment adds to Lactalis USA’s total capital investment in New York, which is projected to reach approximately $123 million between 2020 and 2027. The planned upgrades at both facilities are expected to be completed by 2027, enabling Lactalis to continue meeting the high demand for dairy products and maintain its significant presence in the industry.

The announcement comes on the heels of National Dairy Month and coincides with Lactalis’s recent acquisition of Yoplait and other brands from General Mills, signifying the company’s ongoing commitment to growth and innovation in the dairy sector.

The expansion reflects Lactalis USA’s dedication to advancing its production capabilities while ensuring the economic security of its workforce and the local dairy farming community.

Deeper Dive: News & Info About This Topic

• WGRZ: Lactalis USA to invest $75M in NY facilities upgrade
• GlobeNewswire: Lactalis USA Opens Culinary Sensory Institute
• WKBW: Lactalis USA to invest over $75 million to upgrade facilities
• Wikipedia: Dairy industry in the United States
• Encyclopedia Britannica: Dairy farming