New York State’s invaluable milk supply secures significant economic wins.
Fairlife. Wells Enterprises. HP Hood. What do these three companies have in common besides their reputations as big names in the dairy industry? They each began multi-million-dollar projects in New York State this year.
While most associate the Empire State with the hustle and bustle of Wall Street, outside the Big Apple, nearly 3,000 farms contribute to the single largest segment of New York’s agricultural sector: the dairy industry. Ranked No. 5 in the nation for dairy production, New York contributed approximately 16.1 billion pounds of milk in 2023, providing not only an important good but an essential ingredient in many products.
Overflowing with Opportunity
“Specific competitive advantages that support fairlife’s growth plans in the Greater Rochester, New York, region include access to an abundant, quality milk supply,” explains Matt Hurlbutt, president and CEO at Greater Rochester Enterprise (GRE). “This project will require 80,000 cows to process 5 million pounds of milk daily, which will have a significant positive impact on dairy farmers within 100 miles of the Fairlife production facility.”
Fairlife, a brand of ultra-filtered, lactose-free milk distributed by The Coca-Cola Company, joins the more than 250 food and beverage manufacturers — including leading brands such as Barilla, Motts, Constellations Brands, Wegmans Food Markets, and Baldwin Richardsons Foods — located in the Greater Rochester region.
“Rochester is conveniently located within 500 miles of one-third of the U.S. and Canadian population, which enables food and beverage manufacturers to be close to major Northeast markets like Boston, New York and Washington, D.C., without the sticker shock that comes from operating a business in a high-cost metro area,” says Hurlbutt. “These companies are in the Greater Rochester region in part because of the strategic location, fully integrated supply chain, unlimited water, robust agricultural and technology assets and low cost of doing business.”
Many of these factors drove fairlife to select the Town of Webster for its new 745,000-sq.-ft. facility, which will serve as the company’s flagship Northeast location and the largest dairy production facility in the Northeast. The project represents a $650 million investment and is expected to generate hundreds of local jobs.
“The projected economic impact included more than 500 jobs during construction, 250 permanent jobs upon completion and more than 850 dairy jobs to support the expected 5 million pounds of raw whole milk per day sourced from local farms,” says Hurlbutt. “The Greater Rochester region currently employs more than 60,000 in advanced manufacturing, and the density of skilled engineering and production workers exceeds the national average by 14%.”
Empire State Development is also providing up to $21 million in assistance for the fairlife project through the performance-based Excelsior Jobs Tax Credit Program. And the New York Power Authority is providing nearly 8.5 MW of low-cost ReCharge NY power in exchange for the job creation commitments. Additionally, New York State will provide $20 million through the New York State Environmental Facilities Corporation to help the Town of Webster upgrade its aging wastewater treatment plant and make its operations more environmentally friendly.
Hurlbutt says, “This investment will enable the Town of Webster to replace the aging infrastructure at its existing wastewater treatment facility and make the transition to a water resource recovery facility with additional capabilities to generate new revenue sources, yield direct cost savings and support future growth for other residents and businesses.”
According to a press release, the company selected New York following a personal pitch from Governor Kathy Hochul due to the invaluable assistance from government and community partners and the state’s renown as a leader in agribusiness innovation. GRE, the New York State Department of Agriculture and Markets, the Monroe County Industrial Development Agency, the Town of Webster, and Rochester Gas and Electric are also among those who were instrumental in bringing the company to New York State.
A rendering of the fairlife facility in Webster.
The Inside Scoop
Unlike fairlife, Wells Enterprises has long been located in Upstate New York, experiencing the full benefits of the region’s robust dairy industry. In July, the Iowa-based ice cream manufacturer, which was acquired by the Ferrero Group last year, announced that it would be more than doubling the current footprint of its Dunkirk facility.
The new 350,000-sq.-ft. plant is expected to increase its production capabilities to more than four times its current capacity for novelty and packaged ice cream, including recognizable brands such as Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics. Fortune Business Insights estimates the global ice cream market will reach $132.32 billion in 2032, up from $76.11 billion in 2023.
The newly announced $425 million expansion includes all new production lines, more than doubling the number of manufacturing lines with high-output capabilities, creating new innovation capabilities, a new chocolate ingredient manufacturing facility, offices and more. This project is one of the largest single private investments ever made in Chautauqua County.
New York State is supporting the project with up to $12 million in Excelsior Jobs Program tax credits and a $6 million grant from Empire State Development in exchange for job creation and capital investment commitments. Wells expects to create 270 new jobs and retain approximately 380 full-time positions.
“This expansion is great news for the hundreds of dairy farmers that supply fresh, local milk for the Wells Enterprises ice cream plant, and for Wells Enterprises itself, which has a longstanding tradition of producing some of New York’s finest dairy products,” said State Agriculture Commissioner Richard A. Ball in July. “This will not only help to solidify Wells’ future in Western New York but will also ensure New York State remains a leader in the dairy industry for years to come. I look forward to seeing this project come to fruition.”
