Bongards' $125 Million Expansion: A Boost for Dairy Farmers and Local Economy
Source: The DairyNews
Bongards Creameries is advancing its expansion at the Perham, Minnesota plant, a $125 million project poised to significantly enhance its processing capabilities and benefit regional dairy farmers.
The expansion is set to increase the plant's capacity by 30%, enabling the processing of milk from approximately 16,000 additional dairy cows.
Evan Carlson, Vice President of Marketing at Bongards, emphasized the dual benefits of the expansion: supporting the co-op's business growth and providing opportunities for farmer-owners and new members to increase their production. "The expansion allows us to meet growing demand and supports our cooperative’s commitment to enhancing farmer livelihoods," Carlson stated.
Established in 1908 and transitioning to a co-op model following the acquisition of a former Land O' Lakes facility in 2003, Bongards has continuously upgraded its Perham plant to keep pace with increasing demand. The plant, unique among Bongards’ three Minnesota facilities for processing raw milk, will soon be able to handle 5.5 million pounds of milk daily, up from 4.2 million pounds.
The expansion includes the installation of new cheese packaging equipment, construction of additional milk intake bays, and enhanced whey processing capabilities. According to Carlson, these upgrades are scheduled for completion by early 2025, with the entire project expected to conclude by the end of that year.
In addition to boosting production capacity, the project will create approximately a dozen new jobs and is projected to increase the tax value of the property by $4.7 million, translating to an annual increase in tax revenue of about $78,000. This revenue will benefit local government, Otter Tail County, and the Perham-Dent Public School District, supported by tax increment financing to facilitate the project costs.
Nick Murdock, Director of the Perham Economic Development Authority, lauded Bongards' role as a pivotal community partner and employer. "Their expansion not only supports local farmers but also strengthens our community's economic base," Murdock noted, highlighting the expected fiscal benefits and the cooperative's longstanding engagement in local development.
Evan Carlson, Vice President of Marketing at Bongards, emphasized the dual benefits of the expansion: supporting the co-op's business growth and providing opportunities for farmer-owners and new members to increase their production. "The expansion allows us to meet growing demand and supports our cooperative’s commitment to enhancing farmer livelihoods," Carlson stated.
Established in 1908 and transitioning to a co-op model following the acquisition of a former Land O' Lakes facility in 2003, Bongards has continuously upgraded its Perham plant to keep pace with increasing demand. The plant, unique among Bongards’ three Minnesota facilities for processing raw milk, will soon be able to handle 5.5 million pounds of milk daily, up from 4.2 million pounds.
The expansion includes the installation of new cheese packaging equipment, construction of additional milk intake bays, and enhanced whey processing capabilities. According to Carlson, these upgrades are scheduled for completion by early 2025, with the entire project expected to conclude by the end of that year.
In addition to boosting production capacity, the project will create approximately a dozen new jobs and is projected to increase the tax value of the property by $4.7 million, translating to an annual increase in tax revenue of about $78,000. This revenue will benefit local government, Otter Tail County, and the Perham-Dent Public School District, supported by tax increment financing to facilitate the project costs.
Nick Murdock, Director of the Perham Economic Development Authority, lauded Bongards' role as a pivotal community partner and employer. "Their expansion not only supports local farmers but also strengthens our community's economic base," Murdock noted, highlighting the expected fiscal benefits and the cooperative's longstanding engagement in local development.
