A News Digest about Michigan’s $510 Million Processing Complex: DFA, Glanbia, Select Milk, and Proliant are Partners
On Thursday, August 9, 2018, Michigan announced a monumental project which will fill part of the void in worldwide dairy processing capacity.
Michigan Spartan LLC is the business entity developing a ‘world class dairy processing facility’ expected to process over 8 million pounds of milk a day when fully operating, said to be by September of 2020. American Cheese is projected to be a primary product, with whey permeates, a by-product of cheese production used for food and feed applications, also a product offering.
The new facility is a partnership between Dairy Farmers of America (DFA), Glanbia, Select Milk Producers, and Proliant Dairy Ingredients. The venture is said to be similar to Southwest Cheese, a previously existing partnership of DFA, Glanbia, and Select Milk.
Michigan Milk Producers will also be a milk source for the facility.
The evolution of the project included a number of local and regional economic development and government agencies, with the Michigan Economic Development Corporation’s Michigan Strategic Fund board an integral player. The Michigan Department of Agriculture was also involved.
The sheer magnitude of all the agencies and efforts involved in this monumental project offers many lessons to others considering dairy development efforts in any location.
The project is multi-national in scope, and involves worldwide dairy industry heavyweights. Dairy Farmers of America is North America’s 2nd largest cooperative and 8th largest dairy company. Select Milk Producers is North America’s 8th largest dairy cooperative according to Progressive Dairy, (6th largest on USDA’s Top 100 Ag Co-ops – last available, 2016 numbers) and 14th largest co-op on that composite ranking. Glanbia Nutritionals is North America’s 22nd largest dairy company, and a subsidiary of Glanbia PLC, based in Kilkenny Ireland. Proliant is based in Ankeny, Iowa.
Following is a digest compiled from media reports of today’s (August 9, 2018) from Michigan and other areas:
From the Detroit News: “We really try to grow the value of the agriculture industry so that most of the commodities stay here in the state, have them processed here, keep the farmers here,” is a statement from MEDC CEO Jeff Mason. The project is slated to receive $26.5 Million in Tax Abatements over 15 years.
From the Lansing State Journal (makes one marvel at the effort put into project): the project involved a number of state and local government agencies, included tax concessions on several levels, with these project parameters:
From the Lansing State Journal (makes one marvel at the effort put into project): the project involved a number of state and local government agencies, included tax concessions on several levels, with these project parameters:
- 146 acres in the site
- Will process about 8 Million pounds of milk a day (mostly American style)
- Will produce about 300 million pounds of cheese per year
- Will operate 24/7, 365 days per year
- Notes similarities to Southwest Cheese in New Mexico [another Glanbia / DFA / Select Milk joint venture]
- Will use by-products from each layer of processing (whey from cheesemaking, then permeate from whey concentrated for dairy solids)
From the Detroit Free Press:
- 259 jobs at the cheese plant
- 38 jobs at the adjacent whey permeate plant
From Crain’s Detroit Business; a business publication in the area:
- Another $40 Million in Tax Incentives likely to come in the future may drive total investment from $510 to $550 Million
- The project is part of Michigan’s Agriculture Processing Renaissance Zone initative, a program which assisted with another $58 million dairy processing facility (Foremost Cooperative) and a soybean processing facility earlier this year
- “Adding this capacity to our ecosystem . . . is really going to bring stability to the market” – Peter Anastor, Division Director, Michigan Department of Agriculture
From The Charlotte Observer (an AP story)
- Glanbia will oversee commercial, tecnical, and business operations
- The project considered other sites in other locations
A worldwide milkshed suffering from a lack of modernized processing capacity should benefit from this project.
Note: Additional links and updates may be added in the future to this blog post.
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