MEDC: Planned milk processor will curb MI farming costs

posted by WOODTV - 

ST. JOHNS, Mich. (WOOD) — The Michigan Strategic Fund board has approved incentives to create one of the largest dairy processing facilities in the country right here in Michigan.

Supporters of Spartan Michigan LLC say its $510 million investment will save Michigan dairy farms money by virtually eliminating high transportation costs stemming from a lack of milk processing facilities in the state. The group says last year alone, Michigan milk producers lost more than $164 million because of high shipping costs and lower milk prices due to a supply glut.

The new facility will be located on a 146-acre site in St. Johns, north of Lansing, and process more than 8 million pounds of milk a day, according to the Michigan Economic Development Corporation. 

State officials say the collaboration to create the massive facility is unprecedented. Glanbia, Select Milk Producers and Dairy Farmers of America will invest $425 million into the milk processing plant, creating up to 259 jobs. While not an investor, the Michigan Milk Producers Association is also expected to supply milk.

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