Dairy Farmers of America (DFA), Kansas City, Mo., broke ground on an ingredient processing facility in Cass City, Mich. The $40 million plant will serve a region where milk production is steadily outpacing local plant capacity.

“This plant will provide a local home for our members’ milk, answering the growing need for Michigan plant capacity while building a base for value-added processing in the future,” says Mark Korsmeyer, executive vice president. “Furthermore, the project is consistent with DFA’s strategic plan, creating supply chain efficiencies and increasing commercial investments to bring increased value to our farmer owners.”

At completion next fall, the 33,000-square-foot plant will process up to 3 million pounds of fresh milk each day, which will be supplied by DFA member farms in the Michigan Thumb area. Initially, the plant will produce condensed whole and skim milk, as well as cream. A phased construction plan will allow for growth among current and future DFA members, and the potential to manufacture value-added demand products.