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Released October 21, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Fully embracing the "cheesehead" monicker, industrial and agricultural companies in Wisconsin are pursuing more than 80 projects related to the state's dairy sector, easily leading the U.S. in the number of such projects. While not all of these projects will go through as planned, the state's multiple forays into the dairy sector encompass not only the construction of grassroot plants, but also the expansion of existing facilities to continue the output growth needed from America's Dairyland.

One of the largest dairy projects on the state's books involves the relocation of a key plant belonging to one the U.S.' premier dairy manufacturers, Sargento (Plymouth, Wisconsin), which claims to have innovated important milestones in U.S. retail, including selling the first pre-packaged sliced and grated cheeses in the 1950s, as well as the first zippered packaging for cheese in the early 2000s. The company set up shop in Plymouth, Wisconsin, in the 1950s, where it still retains its headquarters and a manufacturing plant. Remaining loyal to its area roots, when Sargento began feeling the need for an expanded, updated facility, the company opted to remain in Plymouth, purchasing a 66-acre parcel of land on which to establish a new plant.

Sargento has established plans to begin constructing the new 384,000-square-foot facility next year. The plant will contain the most up-to-date processing and packaging equipment and will increase output. Although initially leading to no new jobs, Sargento said the new facility's construction leaves open room for expansion, which potentially could lead to more jobs down the road. The facility is expected to begin production in mid-2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can learn more by viewing the project report.

But other products besides cheese support the state's dairy sector. The nation's largest privately owned butter producer, Grassland Dairy Products (Greenwood, Wisconsin), was established in Wisconsin more than 120 years ago and is in the process of substantially expanding its manufacturing plant in Greenwood, near the center of the state. While Grassland puts out its own brand of products, a substantial portion of its output entails manufacturing butter for private labels sold by various companies and supermarkets.

In the early 2000s, Greenwood purchased dryers in order to expand its product range into dry dairy goods such as dried buttermilk, and this growing side of its business represents a key element of the current plant expansion as new drying equipment will be included. The 57,000-square-foot addition also will allow for new dry-storage warehousing and a cooler-freezer addition. Construction kicked off this summer and is expected to be completed by the end of 2026. Subscribers can learn more by viewing the project report.

In addition to traditional products such as cheese and butter, the state's dairy players also are embracing more cutting-edge products that continue to gain popularity, necessitating future growth. Lifeway Foods Incorporated (Morton Grove, Illinois) provides an example; the company is one of the largest manufacturers of kefir in the U.S. Kefir is a fermented dairy beverage that has been inoculated with various yeasts and bacteria to produce a beverage akin to yogurt and buttermilk. The product has been gaining popularity in the U.S. as consumers flock to probiotic foods to help support their microbiomes.

Already processing nearly 100 million pounds per year of Wisconsin milk into kefir, Lifeway reported an 18% year-over-year increase in product sales in the second quarter of this year, demonstrating growth enough to justify the plant expansion. New pieces of equipment including fermentation tanks are being added to the company's plant in Waukesha that Lifeway claims will roughly double production when completed in the third quarter of next year. Subscribers can learn more by viewing the related project reports.

In addition to manufacturing dairy products, other important projects in Wisconsin are situated further upstream. The University of Wisconsin, Madison, for example, is constructing a grassroot dairy innovation center in partnership with the U.S. Department of Agriculture (USDA). The center will include up to 18 buildings, including barns for cows, laboratories, offices, and storage and support buildings. Among the equipment and tools being installed are robotic milking systems, chambers for measuring greenhouse gas emissions and an animal-nutrition unit. While under the auspices of the university's Madison campus, the center will be located about 30 miles from Madison in Prairie du Sac. Construction kicked off late last year, and the facility is expected to be completed toward the end of 2027. Subscribers can click here to learn more about the project.

And to keep up with all this construction, dairy farms themselves are underway with projects to help supply Wisconsin's many manufacturers of cheese and other dairy products. Krueger Dairy LLC (Shawano, Wisconsin), for example, earlier this year began work on what will result in multiple structures, including more than 570,000 square feet of freestall barns and a new milking parlor, at its Shawano headquarters. Upon completion, Kreuger will be able to grow its herd from approximately 6,200 cows to 9,700 cows, in addition to other animals, when completed in 2027. Subscribers can click here to learn more.

In November 2024, the USDA reported that per capita consumption of dairy products in the U.S. reached 661 pounds per person in 2023, an increase of seven pounds per person from the prior year. The report noted a 19% increase in cheese consumption and 18% rise in butter consumption over the prior 10 years and a whopping 60% growth in yogurt consumption over the past 20 years. With such growth trajectories part of the record, Wisconsin's dairy sector will almost certainly maintain a position of strength, furthering grassroot developments and expansions for years to come.

Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).

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