Foremost Farms begins construction on new milk processing plant

US-based Foremost Farms has started construction on a new $57.9m milk processing plant in Greenville, Michigan.

The new plant, which would stretch over 55,000ft², is expected to increase capacity and accessibility for Michigan dairy farmers, which will provide a major boost to the dairy industry in the region.

According to the Michigan Department of Agriculture and Rural Development (MDARD), currently, the state’s dairy farms spend more than $164m to process milk at out-of-state plants, due to a lack of in state processing plants.

The project is being supported by a $412,500 performance-based Michigan Business Development Programme grant, a $500,000 grant from MDARD’s Food and Agriculture Investment Fund and a 12-year property tax abatement from the city of Greenville.

Michigan Economic Development Corporation CEO Jeff Mason said: “Foremost Farms’ construction of its new milk processing plant in Greenville will elevate the profile and profitability of our state’s dairy industry.”

MDARD director Gordon Wenk said: “The Food and Agriculture Investment Fund grants are more than just an investment in business. They’re an investment in the state’s economy, its people, and its future.”

The new facility, located roughly 30 miles northwest of Grand Rapids, is expected to create 33 new jobs. It will be operated under Greenville Venture Partners, a subsidiary of Foremost Farms.

Foremost Farms is a farmer-owned milk processing and marketing cooperative with around 1,500 members and annual sales of $1.5bn.

Wenk said: “Being the second-most agriculturally diverse state in the country, Michigan is ideally positioned to use more of what we grow and produce to create another layer of economic value for the state.

“Not only will this project work toward stabilizing the industry for milk producers in that region, but it also will create valuable jobs for people in a rural community.”