Producers Dairy Secures $2M Grant for Equipment Upgrade through State Program
Source: DairyNews.today
Producers Dairy, based in Fresno, has been awarded a $2 million grant through California’s Food Production Investment Program (FPIP) to support the acquisition of new equipment aimed at enhancing production capacity and ensuring food safety.
The grant, funded by the California Climate Initiative and administered by the California Energy Commission (CEC), will finance the installation of advanced refrigeration and compressed air systems to modernize the facility's operations.
This initiative aligns with California’s broader goal of reducing harmful emissions and improving energy efficiency in the state’s food production sector. David Hochschild, Chair of the California Energy Commission, emphasized the importance of such grants, stating, “We’re proud to support the food processing industry’s efforts to modernize its equipment to reduce harmful emissions, enhance energy efficiency, and accelerate the adoption of renewable energy. These grants invest in projects that will help California continue to lead the way towards a clean energy future for all.”
Founded in 1955 by Larry Shehaddy, Producers Dairy remains a family-owned business, currently managed by the second and third generations of the Shehaddy family. With deep roots in the Fresno community, the company has grown alongside the region, which ranks as the sixth-most productive milk-producing county in California—a state that leads the nation in milk production.
This $2 million grant is part of a broader state initiative, with a total of $22.6 million being distributed among seven recipients, including companies in Los Angeles, San Diego, Merced, and Wasco counties. The program, which has distributed $140 million in grants across 22 counties since 2018, aims to help food producers lower greenhouse gas emissions while modernizing their operations.
California Department of Food and Agriculture Secretary Karen Ross highlighted the program's impact on rural communities: “Food and beverage processing adds value to our crops, brings jobs, and provides many other community benefits. It is exciting to witness the momentum this program has created to invest in innovative plant technologies that lower emissions, improve water use efficiency, and make sound business sense.”
As part of the initiative, the FPIP grants are specifically designed to reduce greenhouse gas emissions from food production, which currently accounts for approximately 3 million metric tons of carbon dioxide annually, according to the CEC. The new equipment at Producers Dairy is expected to contribute to these environmental goals while bolstering the company’s productivity and operational efficiency.
This initiative aligns with California’s broader goal of reducing harmful emissions and improving energy efficiency in the state’s food production sector. David Hochschild, Chair of the California Energy Commission, emphasized the importance of such grants, stating, “We’re proud to support the food processing industry’s efforts to modernize its equipment to reduce harmful emissions, enhance energy efficiency, and accelerate the adoption of renewable energy. These grants invest in projects that will help California continue to lead the way towards a clean energy future for all.”
Founded in 1955 by Larry Shehaddy, Producers Dairy remains a family-owned business, currently managed by the second and third generations of the Shehaddy family. With deep roots in the Fresno community, the company has grown alongside the region, which ranks as the sixth-most productive milk-producing county in California—a state that leads the nation in milk production.
This $2 million grant is part of a broader state initiative, with a total of $22.6 million being distributed among seven recipients, including companies in Los Angeles, San Diego, Merced, and Wasco counties. The program, which has distributed $140 million in grants across 22 counties since 2018, aims to help food producers lower greenhouse gas emissions while modernizing their operations.
California Department of Food and Agriculture Secretary Karen Ross highlighted the program's impact on rural communities: “Food and beverage processing adds value to our crops, brings jobs, and provides many other community benefits. It is exciting to witness the momentum this program has created to invest in innovative plant technologies that lower emissions, improve water use efficiency, and make sound business sense.”
As part of the initiative, the FPIP grants are specifically designed to reduce greenhouse gas emissions from food production, which currently accounts for approximately 3 million metric tons of carbon dioxide annually, according to the CEC. The new equipment at Producers Dairy is expected to contribute to these environmental goals while bolstering the company’s productivity and operational efficiency.