U.S. Dairy Industry Invests More than $2 Billion in New Plant Construction, Expansions

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Researched by Industrial Info Resources (Sugar Land, Texas)--Manufacturers of dairy-based products in the U.S. are on track to invest more than $2.2 billion over the next couple of years in building new facilities and upgrading and modernizing existing plants. Investments at facilities engaged in processing milk or products made from milk are on the rise, from dairy farms to cheese and yogurt manufacturers, to milk-based nutritional drinks. Industrial Info is tracking more than 75 major capital and maintenance projects that are under construction or scheduled to start construction before June 2014.

Investments in the dairy manufacturing sector are being stoked by low raw milk prices, a continuing shortage of processing capacity in some pockets of the country, and growing market for yogurt products.

Projects range in investment value from $750,000 and go as high as $270 million, while the majority of the expenditures fall in the $10 million to $50 million range. There are nine planned projects that are worth $100 million or more, which include plans to build two yogurt plants and to expand two others.

The bulk of the dairy spending activity will take place in the Great Lakes region, with 28 planned projects that combine for just more than $1 billion in expenditures. The Midwest region is in a distant second place, with just 12 projects worth close to $224 million. Among all U.S. states, the highest concentration of project activity falls in Wisconsin, with 13 projects having a cumulative value of $431 million.

Grassroot construction activity accounts for more than 50% of all spending and will result in 14 new plants.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.