Michigan would now become home to a world-class dairy processing facility which would potentially be the second largest in the country. Private investors have reportedly shown interest in developing the dairy processing site by investing USD 510 million.
According to sources, MEDC’s Michigan Strategic Fund board has agreed to develop a 146-acre dairy processing site, named ‘Michigan Spartan LLC’ to be located in St. Johns. It would also invest a sum of USD 26.1 million, and allow for 15 years of tax rebate, with a hope to create nearly 300 jobs in the country, if the proposal gets regulatory approval.
As per credible sources, the new dairy facility at St. Johns will be located 20 miles northwards to Lansing, and would have a single plant with a capacity of converting about 8 million pounds of milk into cheese and whey powder.
Rick Snyder, the Governor of Michigan, claims that Michigan’s dairy industry is pivotal to the state’s economy, and this new investment will further increase its potential as it would create jobs and opportunities in the region.
John Wilson, Senior VP at Dairy Farmers of America, was quoted stating that the dairy farmers are going through a bad phase and facing uncertainty in exports because of trade policy issues. He further added that the new plant would provide renewed hope to Michigan’s dairy farmers.
For the record, about 200 dairy farms in Michigan have been shut down since last year, due to the oversupply of milk, excessively hitting costs for the fourth consecutive year.
Apparently, since 2000, the milk production in the state has risen by 96% due to 40% increase in the cow population, owing to advancement in cattle care and technology. Shockingly, as reported in 2017, the overproduction of milk caused a loss of USD 164 million to milk producers.
Reliable reports suggest that the construction will begin in September and the project would be completed by December 2020.