Dairy Farmers of America teaming with Chinese company on $100M plant

The Brandt Dairy in Osage County is growing while the number of dairy farmers overall is declining. | Courtesy of Bell Johnson
Courtesy of Bell Johnson

Dairy Farmers of America, a dairy cooperative based in Kansas City, has announced an agreement with a Chinese company to build a $100 million plant that will produce 88,000 tons of milk powder a year.

Dairy Farmers of America will contribute $70 million, and Inner Mongolia Yili Industrial Group will pay $30 million to build the plant, which is an outgrowth of a strategic partnership between the two companies formed two years ago. The location for the facility has not been disclosed, but western Kansas is believed to be a contender.

Industry observers greeted the deal as a milestone in the U.S. grabbing a bigger share of China’s surging demand for dairy products.

Read more from the Kansas City Star

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