U.S. Dairy Processors Commit $13 Billion to Protein Products
Michael Dykes, president and chief executive of the International Dairy Foods Association, said the scale of the investment reflects commercial confidence in the dairy sector’s long-term fundamentals. The industry has continued to invest after dealing with pandemic disruptions, labour shortages and fluctuating input costs.
The projects are not limited to increasing processing volume. Companies are developing more automated facilities with sustainability features and equipment that can switch between products as demand changes. The investment is concentrated in product categories with relatively high protein content and value.
Cheese accounts for the largest share, at $3.2 billion. Liquid milk and cream processing follows with $2.9 billion, while yogurt and cultured dairy receive $2.8 billion. Butter and specialised milk powders account for $1.6 billion, and ice-cream projects represent a further $530 million.
Cheese investment coincides with a rise in domestic consumption. Per-person consumption in the United States has doubled over the past 50 years. Processors are also adding capacity for exports to Latin America, Asia and the Middle East, according to the source.
New York has the largest state total, with $2.8 billion. The projects are linked to the state’s access to consumers in the north-eastern United States and to ports on the East Coast serving trade with Europe and Africa. Texas follows with $1.5 billion, with Gulf Coast ports providing access to Mexico and other Latin American markets.
Wisconsin is receiving $1.1 billion to modernise cheese-making facilities. Further investment totals $720 million in Idaho and $701 million in Iowa, reinforcing processing centres connected to regional milk supplies. The geographical distribution of the projects follows both milk-producing areas and export routes.
