If everything proceeds as planned, a new cheese and whey processing facility will locate in Michigan and be on line by the second half of 2019. The details are yet to be finalized, as well as the location, but advanced discussions are taking place between the Irish-based Glanbia and three cooperatives serving Michigan — Dairy Farmers of America Inc., Michigan Milk Producers Association and Foremost Farms USA.

The announcement is welcome news for the state, which has increased milk production 80% from 2000 to 2015, and all indications are milk production will continue to grow in Michigan. The dairy herd was estimated at 425,000 head for December, up 13,000 head from a year earlier. Michigan represents more than 50% of the milk production growth in the U.S. this past year.

In 2015, Michigan ranked seventh nationally in terms of milk production and has struggled to keep up with processing capacity.

Construction on the plant is anticipated to begin in late 2017, and upon completion, it is projected to process 8 million pounds of milk per day. It is proposed that 50% of the joint venture will be owned by Glanbia and the 50% balance will be owned by DFA, MMPA and Foremost Farms. As part of the proposed joint venture, DFA, MMPA and Foremost Farms would supply all milk required by the plant, while Glanbia will have full responsibility for all commercial, technical and operational aspects of the business. 

MMPA General Manager Joe Diglio says, “In the dairy industry, we value the opportunities provided by working together — from farmers with fellow farmers to co-ops with fellow co-ops. By enhancing synergies between cooperatives, we can effectively serve our members with this joint venture. Michigan is home to a quality milk supply, with increased needs as production continues to grow. This cheese and whey facility will provide a strategic solution for the region moving forward.”

Milk production is expected to continue to grow in the state, and Ken Nobis, president of MMPA, says members have made good use of advantages afforded in this area. “We have productive soils to grow feed, a climate that is conducive to cow comfort, a plentiful water supply, and a ‘people infrastructure’ that is second to none. In addition, we are within an eight-hour drive of 50% of the U.S. population,” he says.

To accommodate the new volume, MMPA expanded processing capacity at both of its Ovid and Constantine plants. “This was a small part of the $100 million investment made by MMPA to increase processing capacity since 2009,” Nobis says.

MMPA also purchased its own cheese processing facility in Middlebury, Ind., in 2016.

“We are working every day, both within our own system and with others, to accommodate production increases,” Nobis says.

Brian Phelan, CEO of Glanbia Nutritionals says, “The proposed venture will build on our position as the number one producer of American-style cheddar cheese and simultaneously expand our global position as a supplier of advanced technology whey protein to the nutritional sector. This proposed joint venture is a strategic move by all the partners to benefit from the growing, large-scale milk pool in the state of Michigan.”