Dairy Farmers of America (DFA) recently broke ground on an ingredient processing facility in Cass City, Michigan. The $40 million plant will serve a region where milk production is steadily outpacing local plant capacity.

“This plant will provide a local home for our members’ milk, answering the growing need for Michigan plant capacity while building a base for value-added processing in the future,” says DFA Executive Vice President Mark Korsmeyer. “Furthermore, the project is consistent with DFA’s strategic plan, creating supply chain efficiencies and increasing commercial investments to bring increased value to our farmer owners.”

Numerous partner agencies contributed substantial support to the plant. The Michigan Strategic Fund (MSF) approved a $500,000 Michigan Business Development Program grant and a $1 million Community Development Block Grant, while the Michigan Economic Development Corp. is contributing $300,000 in corporate funds.

MSF also awarded Tuscola County and Cass City a new 15-year Agriculture Processing Renaissance Zone designation for the project, and the Village of Cass City offered support by providing revenue bonding valued at around $6.7 million for a wastewater pretreatment system and public infrastructure improvements.

In addition to creating at least 25 full-time positions at the facility, increased employment opportunities are expected to occur on member farms and in agriculture support industries.

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“This new plant underscores the growth and continued expansion opportunities for Michigan’s food and agriculture companies,” says Jamie Clover Adams, director of the Michigan Department of Agriculture and Rural Development. “The plant will not only increase our dairy processing capabilities in the state, but it will also create jobs and support the Thumb region.”

At completion next fall, the 33,000-square-foot plant will process up to 3 million pounds of fresh milk each day, which will be supplied by DFA member farms in the Michigan Thumb area. Initially, the plant will produce condensed whole and skim milk, as well as cream. A phased construction plan will allow for growth among current and future DFA members, and the potential to manufacture value-added demand products.

Reflecting the cooperative’s focus on sustainability, the plant is designed to recover and re-use water in plant cleanup operations. PD

—From DFA news release