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Chobani comes to Pennsylvania

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Chobani plans to invest $1.2 billion to establish its first dairy manufacturing operation in Pennsylvania, a project expected to create more than 900 jobs and dramatically increase demand for milk produced by the state’s dairy farmers.

Gov. Josh Shapiro announced the project Monday, calling it the largest private investment in Pennsylvania’s agriculture industry. The company will take over Keurig Dr Pepper’s manufacturing facility in Upper Macungie Township in the Lehigh Valley.

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The 1.5 million-square-foot facility will be used to manufacture Chobani products beyond yogurt, with production expected to begin in 2027.

Once operating at full capacity, the plant is expected to process more than 3 billion pounds of Pennsylvania milk annually. That is equivalent to about 30% of all milk currently produced in the state and would represent the largest increase in demand for Pennsylvania dairy products in state history.

The project could have a significant impact on Pennsylvania’s approximately 4,000 dairy farms by providing another major market for their milk. Pennsylvania has the second-highest number of dairy farms in the nation, according to the state.

The company expects to create more than 900 full-time jobs over the next five years, primarily in advanced food manufacturing.

Pennsylvania is providing $50 million in loans and grants through the PA SITES program to support infrastructure and improvements needed for the project. Another $127 million in state loans and grants will be available to eligible Pennsylvania dairy farmers to help them prepare for the increased demand for milk.

Chobani may also qualify for state tax credits for milk processing. The project is receiving assistance through Pennsylvania’s Permit Fast Track Program, intended to speed permitting for major economic development projects.

Chobani founder and CEO Hamdi Ulukaya said the existing factory, Pennsylvania’s large number of family farms and access to fresh milk helped make the Lehigh Valley attractive for the company’s expansion.

The investment comes as Pennsylvania seeks to expand dairy processing capacity and provide additional markets for farmers. Agriculture is a major part of the state’s economy, with more than 48,800 farms contributing more than $132 billion annually and supporting nearly 600,000 jobs.

Chobani is expected to begin production at the Lehigh Valley plant next year.

Source: pa.gov

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