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Pavilion dairy manufacturing plant to be 'idled' end of March, 13 people to find new jobs

By Press Release

Press Release:

After an extensive review of the operations and business plan, Dairy Farmers of America (DFA) announced today it will be idling its Pavilion, N.Y., manufacturing plant. The plant is operated under WNY Enterprises, a joint venture between DFA and Craigs Station Ventures.

“Business decisions that impact people’s lives are never easy,” says Martin Bates, president, DFA Ingredient Solutions. “The employees at this facility have done an excellent job producing high-quality dairy ingredients. We will continue to explore alternative uses for the facility that will generate acceptable financial returns to all stakeholders and provide a beneficial market for our farmer-owners’ milk.”

The plant, where 13 people are currently employed, will idle production on March 31, 2023. DFA will assist employees to help them through this transition, including extending employment opportunities at nearby facilities and offering separation and outplacement support.

Torrey Farms donates 26,000 pounds of veggies to New Yorkers in need

By Billie Owens

Press release:

The Northeast Dairy Producers Association (NEDPA) today announced that farms and co-ops located across Upstate New York have donated more than 34,000 pounds of milk, beef, fruit and vegetables to fellow New Yorkers in need. 

In addition to the NY-sourced milk and food, packets of crayons and coloring books for kids have also been donated, and were made available to families today, May 1, at Senator Jessica Ramos’ district office in East Elmhurst, Queens.

The following donations were made possible by a partnership between Senator Ramos and a number of New York State farms:

  • 300 pounds of beef donated by La Casa De Leche Farm (Livingston County) and the Northeast Dairy Producers Association.
  • 1,700 gallons of milk donated by Dairy Farmers of America.
  • 20,000 apples equaling 5,700 pounds donated by Farm Fresh First Inc., which markets NY apples from more than 100 apple growers throughout the state.
  • 14,000 pounds of onions, 8,000 pounds of potatoes and 4,000 pounds of cabbage donated by Torrey Farms Inc. (Genesee County) and the New York State Vegetable Growers Association
  • 2,880 pounds of blueberry and vanilla parfait yogurt donated by Upstate Niagara Cooperative Inc., a dairy cooperative located in Western New York.
  • 575 packs of Prang Crayons made with soybean oil donated by the New York Corn & Soybean Growers Association, along with coloring books sponsored by New York dairy farmers and donated through American Dairy Association North East.

On Wednesday, a truck left Western New York packed with beef, vegetables, fruit, yogurt, crayons and coloring books. The truck stopped at Dean Foods in Rensselaer County to pick up 1,700 gallons of milk and arrived in Queens yesterday.

Many areas in Senate District 13, including Elmhurst, East Elmhurst, Jackson Heights, Corona and parts of Woodside and Astoria — are considered food deserts, making it difficult to obtain fresh meals. Additionally, there are few local food pantries that remain open in the area as many residents have fallen ill with COVID-19. 

The donations of food, milk, crayons and coloring books were distributed to families in need today. A hot meal distribution will also take place on Saturday, May 2 at Senator Ramos’ office. 

“In addition to the unspeakable loss of life caused by the coronavirus pandemic, two additional devastating tragedies are unfolding during this crisis — a spike in hunger as the economic pain takes its toll, and the breakdown of our food supply chain,” Senator Ramos said.

“We cannot have hungry families in New York City, and farmers Upstate dumping their product because they cannot sell it. Together with our farmer partners, we created our own network, and we will convert our district office into a food distribution hub to provide our neighbors with fresh produce and meals.” 

Northeast Dairy Producers Association Vice Chair and Owner of La Casa De Leche Farm (Livingston County) Keith Kimball said, “The COVID-19 pandemic has impacted us all -- our families, our businesses and the greater New York community.

"By pooling resources and working together to adapt to unprecedented market disruption, we’re able to get milk, beef and produce in the hands of those in need. I’m proud to partner with farmers, co-ops and processors across the state to make this donation a reality, and thankful to Senator Ramos for hosting the event for families in Queens.”

Maureen Torrey, co-owner of Torrey Farms Inc. in Genesee County, said, “Thanks to the passionate employees on our family farm and our dedicated truck drivers, we’re able to donate 26,000 pounds of vegetables to families in need, including onions that Senator Ramos helped us plant last year.

"This public health crisis has changed life as we know it, but what we’ve learned is that no matter where you live -- Buffalo, Plattsburgh, New York City and everywhere in between -- we’re all New Yorkers -- and together We are New York Tough.” 

(File photo of Maureen Torrey taken in 2013.)

Northeast Dairy Producers Association (NEDPA) is an organization of dairy producers and industry partners committed to an economically viable, consumer-conscious dairy industry dedicated to the care and well-being of our communities, environment, employees and cows.

HP Hood closes deal to acquire former Muller Quaker plant

By Howard B. Owens

One of the Northeast's largest dairy producers now officially has a footprint in Batavia.

HP Hood, based in Lynnfield, Mass., closed on the deed to the former Muller Quaker Dairy plant on Friday, paying $54,216,000 to Dairy Famers of America for the facility.

DFA acquired the property from Muller Quaker in December 2015 for $60 million.

As part of the deal, Hood agreed to take over the obligations of Muller Quaker for the property, which includes making payments in lieu of taxes (PILOT) along with paying a variety of fees to Genesee County Economic Development Center.

The GCEDC board has yet to improve a new PILOT agreement for the 363,000-square-foot, state-of-the-art milk processing facility, but is considering providing Hood with more than $7 million in tax abatements over 10 years, with an anticipated total economic benefit to the region of more than $330 million.

Hood will pay GCEDC $1.7 in annual installments of $280,000 over six years, starting with an initial payment delivered Friday at closing.

There is also an annual $1,000 administration fee and a $5,000 annual property maintenance fee to assist with maintenance of the Genesee Valley Agri-Business Park, where the plant is located (next to the Genesee County Fairgrounds on Route 5).

Hood is reportedly planning to add a 100,000-square-foot warehouse to what is already the largest dairy processing facility in the United States.

The plant cost PepsiCo and Theo Muller Group $206 million and Hood is planning to invest significantly more into the plant. Reconfiguring the plant from one that made just Quaker Muller's own take on Greek yogurt and adding the warehouse will create more than 500 construction jobs with a payroll of $26 million. 

While Muller Quaker topped out at 162 jobs created, Hood promises 250 jobs at the plant, with an average annual salary of $47,000.

Hood plans to begin construction this summer and be operational by the first quarter of 2019.

Previously:

GCECD board approves transfer of benefits to DFA for dairy plant

By Howard B. Owens

Press release:

The Board of Directors of the Genesee County Economic Development Center (GCEDC) at its Jan. 14 board meeting authorized the transfer of a PILOT (Payment In Lieu of Taxes) agreement to Dairy Farmers of America (DFA) as a result of the sale of the former Muller Quaker Dairy plant in Batavia. The PILOT agreement will be in effect for the remainder of 2016.

A key provision of the PILOT that will be transferred to DFA is a $300,000 payment from DFA for water and waste water/sewer infrastructure sustainability to the town of Batavia and the assumption of fire district fees.

“We are extremely pleased that Dairy Farmers of America has agreed to purchase the manufacturing facility in the Genesee Agri-Business Park,” said Paul Battaglia, chairman of the Board of Directors of the GCEDC. “I think it shows that DFA is a company with a great deal of integrity as well as a commitment to our community.”

“This is another great example of how all of our public and private partners in the economic growth and sustainability model we embraced over the last 10 years continue to excel in making sure our taxpayers and water/sewer customers are well served and able to rely on stable rates in the face of unpredictable events,” said Gregory H. Post, supervisor of the Town of Batavia.

“The efforts made on behalf of the Town of Batavia and the region by Steve Hyde and the staff at GCEDC and the extraordinary investment in our Town by DFA during the transfer of PILOT agreement allow us to continue to offer and provide the infrastructure and support necessary to efficiently serve our community’s ever growing needs. We stand ready, willing and able to assist the new owners and offer thanks to all involved in this negotiation.”

It is expected that within the next few months that DFA will present its plans for operating the manufacturing facility and submit its own application for assistance at the appropriate time.

“We expect many, if not all of the jobs lost from the plant’s closure last month to be restored, but that is going to take some time as DFA prepares its plans,” said Steve Hyde, president and CEO, GCEDC. “We remain committed to assisting the DFA in this transition to ensure the plant will continue operations as one of the region’s largest agricultural food production facilities, as well as serve as a major economic driver in the region.”

Dairy Farmers of America (DFA) is a national dairy marketing cooperative that serves and is owned by more than 14,000 members on more than 8,000 farms in 48 states. DFA is also one of the county’s most diversified manufacturers of dairy products, food components and ingredients and is a leader in formulating and packaging shelf-stable dairy products.

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