MORE: Chobani in Pa.: Overcoming challenges to land state’s biggest-ever private agricultural investment
Chobani will invest $1.2 billion to establish its first Pennsylvania dairy manufacturing operation, marking the largest private sector investment in the state’s agriculture history, Gov. Josh Shapiro’s office said.
The project will create 900 full-time jobs over five years in the Lehigh Valley and expand markets for more than 4,000 Pennsylvania dairy farmers.
Shapiro is scheduled to announce the project at a news conference at 11 a.m. Tuesday near the site of the proposed project in Lehigh County.
Chobani acquired a 1.5 million-square-foot facility at 7356 Industrial Blvd. in Upper Macungie Township, currently operated by Keurig Dr Pepper.
When fully operational, the facility will process more than three billion pounds of Pennsylvania milk annually, equivalent to approximately 30% of all milk currently produced in the state.
The company, based in Norwich, New York, plans to manufacture food products beyond yogurt at the site, with production expected to begin in 2027.
“This $1.2 billion investment from Chobani is the largest private sector investment in the history of Pennsylvania’s agriculture industry and will strengthen our dairy industry, support our farmers, and reinforce our position as a national leader in agriculture and food manufacturing,” Shapiro said in a news release.
Pennsylvania has the second highest number of dairy farms in the nation. The state’s more than 48,800 farms contribute over $132 billion annually to the economy and support nearly 600,000 jobs, according to figures provided by the governor’s office.
In the release, Agriculture Secretary Russell Redding called the announcement “the biggest change for our dairy industry in a generation.”
“Governor Shapiro has been clear that our dairy producers are among the best in the world, and maintaining our leadership requires investment, innovation, and a strong processing infrastructure to create markets for the milk they produce,” Redding said.
The Commonwealth will provide $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites Program to support infrastructure and site improvements. An additional $127 million in loans and grants will be available directly to eligible Pennsylvania dairy farmers to meet increased demand.
Chobani may also access future milk processing tax credits through the Department of Revenue program known as Pennsylvania Economic Development for a Growing Economy.
The Shapiro Administration is supporting the project through the Pennsylvania Permit Fast Track Program, designed to streamline the permitting process for economic development and infrastructure projects.
The release from the governor’s office said Chobani will offer competitive wages and industry-leading benefits.
“The facility in Allentown brings new market opportunity to Pennsylvania’s dairy industry, helping to strengthen the viability of these individual dairy farm families while revitalizing our rural communities that depend on the economic revenue and jobs these farms provide,” Jayne Sebright, executive director of the Center for Dairy Excellence, said in the release.
Shapiro’s scheduled visit on Tuesday to the Lehigh Valley marks the second time this year he has come to the region to announce a major economic development project.
In January, he joined representatives from Eli Lilly in announcing plans for a $3.5 billion pharmaceutical plant to be built on Main Street, also in Lehigh County’s Upper Macungie Township.
The site Chobani is eyeing is less than three miles from where Eli Lilly is building its plant. It was previously the long-time home of a Kraft Heinz factory that operated for 45 years. The factory closed in 2016 and was bulldozed.
Keurig Dr Pepper built a new manufacturing facility on the 92-acre site in 2019. It wasn’t immediately clear what will become of Keurig Dr Pepper’s local operations.
Additional details are expected to be released during the news conference.