Michigan Milk Producers Association’s dairy processing facility in the village of Constantine will be undergoing an expansion, adding a 7,500-square-foot processing area to its existing facility.

The project is expected to generate a total investment of $24 million and create 11 jobs, according to the Michigan Economic Development Corp., which supported the expansion through the Michigan Strategic Fund with a $122,000 Michigan Business Development Program performance-based grant.

The company plans to expand the Constantine plant capacity by 1.3 million pounds of milk per day.

Michigan Milk Producers Association, a dairy farmer-owned cooperative and dairy producer serving more than 1,700 farmers in Michigan, Indiana, Ohio and Wisconsin, chose Michigan for the expansion over a competing site in Indiana because of the state’s increased milk production.

“MMPA’s expansion of its processing facility in Constantine will increase capacity for Michigan dairy farmers while elevating the profile and profitability of our state’s dairy industry," says Jeff Mason, CEO of MEDC, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the Michigan Strategic Fund. “We’re pleased to work with our partners to support this investment and the new jobs for area residents.”

MMPA operates two manufacturing plants in Michigan that produce butter, nonfat dry milk, cream and condensed skim milk. The company also supplies more than 1 billion pounds of milk annually to local bottlers to fill the milk jugs sold in grocery stores.

 “We appreciate the support of the Michigan Economic Development Corp. for their performance-based grant awarded to our cooperative,” says MMPA General Manager Joe Diglio.

“MMPA is increasing the footprint at our dairy processing plant in Constantine and adding new equipment to manufacture new value-added products. The dairy industry is vital to our state’s economy, and the largest part of the agriculture sector in Michigan,” Diglio says. “This investment will help support Michigan’s economy and the needs of our dairy farmer member-owners.” 

The village of Constantine is considering a 50% property tax abatement in support of the project. Visit MMPA for information on careers. 

From an economic standpoint, the expanded facility will provide Michigan dairy farmers with a much-needed financial boost due to the current lack of available processing capacity in the state. In 2017, the loss to Michigan milk producers was more than $164 million, according to the Michigan Department of Agriculture and Rural Development. 

According to MDARD, Michigan ranks fifth in the nation for total milk production, with dairy farmers contributing $15.7 billion to the state’s economy. Dairy cows in Michigan produced 10.9 billion pounds of milk. Michigan’s 1,747 dairy farms, with more than 427,000 cows, produce more than enough milk to supply the entire state. Currently, more than 24% of Michigan milk production, or 2.65 billion pounds, is shipped out of state per year.

The MMPA project is the most recent example of Michigan Strategic Fund’s support for dairy processing facilities in Michigan. In August, the fund approved $27.6 million in grants and tax abatements for Spartan Michigan LLC, a new dairy processing facility in St. Johns. The project is expected to generate $425 million in total investment and create 259 jobs.

In February, Greenville Venture Partners LLC, a subsidiary of Foremost Farms USA Cooperative, announced plans to establish a 55,000-square-foot dairy processing facility in the city of Greenville that will help provide an outlet to process the current surplus milk supply in Michigan.

The Michigan Strategic Fund approved a $412,500 Michigan Business Development Program performance-based grant and private activity bond inducement valued at up to $12 million in support of the project. The project is expected to generate $57.9 million in capital investment and create 33 jobs. 

Source: MEDC