GARDEN CITY, Kansas – It’s a joint venture between Dairy Farmers of America, a cooperative owned by 13,000 dairy farmers, and a Chinese company, Inner Mongolia Yili Industrial Group. The two have a plan to build a $100 million plant, but neither side will say exactly where it is going. However, local leaders have been informed.
“We have received confirmation from dairy farmers of America that they are exploring opportunities to build a dairy processing plant in Kansas, however a location hasn’t been determined,” said Lona DuVall, President of the Finney County Economic Development Corporation.
Once up and running the plant would produce about 88,000 tons of milk powder a year, making it one of the largest facilities of its kind.
The beef industry in Western Kansas has the infrastructure to support such a venture and analysts say it makes the most sense.
“This would be a good fit because the two industries, even though they are different, they still integrate and work well together,” said KSN Ag Expert John Jenkinson.
In Kansas the beef industry is significantly larger than the dairy industry, but dairy cattle numbers have grown in the last decade and in Western Kansas the resources exist to continue that growth.
“We have the alfalfa, we have the corn to support these dairies,” Jenkinson said.
An announcement on the location is expected in the near future.
Source: ksn.com