The city of Batavia has temporarily halted a $120 million expansion project with HP Hood in the town of Batavia due to “violations of the town’s contracted wastewater capacity limit,” and both municipalities are working to rectify the situation, City Manager Rachael Tabelski says.

The Genesee County Economic Development Center (GCEDC) Board of Directors approved a final resolution for HP Hood’s $120 million proposed expansion project at its meeting on Thursday, March 7.

The 32,500 sq. ft. expansion project pledges to create 48 new jobs while retaining 455 FTEs adding to 1,000+ professionals in the food processing industry and cluster with over 1.2 million sq. ft. of food and beverage facilities at the Genesee Valley Agri-Business Park. 

“The dairy hub of the northeast at the Genesee Valley Agribusiness Park has built itself upon the qualities of our workforce, our dedicated farming families, and our strategic location close to major consumers,” said GCEDC President and CEO Steve Hyde. 

“The economic infrastructure generated by shovel-ready sites and workforce development programs has set up HP Hood and our robust food and beverage industry for sustained success.”

HP Hood’s expansion accommodates its automatic storage and retrieval system (ASRS) refrigerated warehouse. The project will also include new batching and processing systems and other upgrades which will allow the company to increase capacity and begin a new production line.

“The addition of another generational investment will result in the Genesee Valley Agri-Business Park delivering more benefits to our community and agricultural sector,” added Hyde. 

Genesee County’s shovel-ready sites have been designed and strategically located at key transportation routes with access to population centers across the Northeast and Midwest and infrastructure corridors, including access to low-cost hydropower.

HP Hood’s investment is projected to result in a local economic impact of $49.87 million in wages and tax revenue. The GCEDC approved sales tax exemptions estimated at $4.52 million, a property tax abatement estimated at $549,705 based on an incremental increase in assessed value, and a mortgage tax exemption estimated at $536,000 bringing the value of the proposed financial agreements to approximately $5.6 million. For every $1 of public benefit, HP Hood is investing $16 into the local economy.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors will consider a final resolution for HP Hood’s $120 million proposed expansion project at its meeting on Thursday, March 7.

Announced by New York State Governor Kathy Hochul last fall, HP Hood plans to expand its footprint at the Genesee Valley Agri-Business Park. The project includes the construction of a 32,500 square foot expansion to accommodate its automatic storage and retrieval system (ASRS) refrigerated warehouse.  The project will also include new batching and processing systems and other upgrades, allowing the company to increase capacity and begin a new production line. 

“The agricultural sector is a backbone of our regional and state economy, as evidenced by the significant investment and jobs provided by companies such as HP Hood, Upstate Niagara Cooperative, and O-AT-KA Milk Products, among many others,” said GCEDC President and CEO Steve Hyde. The sector's growth here is the result of the Genesee Agri-Business Park, which was constructed in 2011 and is now almost at full build-out.”

The expansion would create 48 new jobs while retaining 455 full-time positions as part of the company’s 1,200 employees throughout New York State. Investments at the Genesee Valley Agri-Business Park have resulted in a cluster with over 1.2 million sq. ft. of food and beverage facilities employing over 1,000 professionals in the food processing industry, the leading employment sector in Genesee County and GLOW region.

Press Release:

The proposal reviewed by the Genesee County Economic Development Center (GCEDC) for HP Hood’s $120 million expansion at its September 7, 2023 board meeting marks a significant milestone for the Genesee Valley Agri-Business Park in the town of Batavia. 

Since opening in 2011, the Ag Park and supporting infrastructure have generated investments of approximately $607 million by HP Hood, Upstate Niagara Cooperative, Marktec Products, and O-AT-KA Milk Products that have resulted in a cluster with over 1.2 million sq. ft. of food and beverage facilities set to employ over 1,000 professionals in the food processing industry, which is the leading employment sector in Genesee County and GLOW region.

HP Hood’s investment also marks another $100+ million project in Genesee County, and the fifth largest in the county’s history, four of which have been announced in just the past year. 

These projects include Plug Power’s expansion announced by New York State Governor Kathy  Hochul in 2023 in which the company will be investing an additional $377 million on top of the $290 million investment Plug Power announced in 2021 at Western New York Science & Technology Advanced Manufacturing Park (STAMP). Also in 2023, Edwards announced a $319
million project at STAMP and Horizon Acres Associates announced a $142 million multi-phase development in the town of Pembroke. 

“Our success in regional economic development is the result of the collaboration with our public sector partners as we have worked through the years to prepare sites such as the Agri-Business Park and STAMP so that they are industry-ready with high-capacity utility infrastructure in order to market these assets to companies and in turn the new jobs and investment they are making in our community,” said Steve Hyde, GCEDC President and CEO. 

“Genesee County’s commitment to growth allows companies to start construction almost immediately which sets them up for sustained success as they expand operations, and we are witnessing that first-hand through HP Hood’s recent investment announcement.” 

HP Hood's expansion at the Genesee Valley Agri-Business Park includes the construction of a 32,500 sq ft building to accommodate the addition of new batching and processing systems, along with other upgrades that will allow the company to increase capacity and begin the production for a new product line. The expansion project will create 48 new full-time positions while retaining 455 employees. 

“From HP Hood’s initial investment of $205 million and 230 jobs announced in 2017, both of those numbers have nearly doubled; the food and beverage sector continues to grow and shows no signs of stopping,” added Hyde.

A 2019 SUNY Rockefeller Institute of Government study reported the economic output of labor income and value added by businesses in Genesee County’s shovel-ready sites at $809 million – 16% of the total economic output of the county. The study projects that the existing shovel- ready sites could support an additional $4.9 billion of economic output at full capacity.

Genesee County’s shovel-ready sites have been designed and strategically located at key transportation routes with access to population centers across the Northeast and Midwest and infrastructure corridors, including access to low-cost hydropower.

As announced by New York State Governor Kathy Hochul, HP Hood plans to invest $120 million to expand its footprint at the Genesee Valley Agri-Business Park in the town of Batavia.  The Genesee County Economic Development Center (GCEDC) Board of Directors will consider an initial resolution for the proposal expansion at its meeting on Thursday, September 7^th.

The $120 million project includes the construction of a 32,500 sq ft expansion to accommodate its automatic storage and retrieval system (ASRS) refrigerated warehouse.  The project will also include new batching and processing systems and other upgrades which will allow the company to increase capacity and begin a new production line.

 The expansion would create 48 new jobs while retaining 455 FTEs, more than doubling the company’s initial employment commitments in 2017. HP Hood’s project is the fifth $100+ million project in Genesee County in the past three years, including Plug Power’s expansion and Edwards Vacuum announcements at STAMP and Horizon Acres Associates in Pembroke in 2023, and Plug Power’s initial project at STAMP in 2021.

 “Since 2011, the Genesee Valley Agri-Business Park food and beverage industry has attracted over $600 million of private sector investment supporting over 1,000 jobs,” said GCEDC President and CEO Steven Hyde. “This investment and jobs has generated significant benefits for our community as Genesee County and Batavia are truly the leading dairy-processing hub of the Northeast.”

The GCEDC will consider sales tax exemptions estimated at $4.52 million, a property tax abatement estimated at $549,705 based on an incremental increase in assessed value, and a mortgage tax exemption estimated at $536,000 bringing the value of the proposed financial agreements to approximately $5.6 million. For every $1 of public benefit, HP Hood is investing $16 into the local economy resulting in a local economic impact of $49.87 million in wages and tax revenue.

The GCEDC board will also consider a final resolution from Oak Orchard Solar 3 LLC for a 5 MW community solar farm in the town of Batavia. The $9 million project is projected to generate $4,000/megawatts (AC) annually + a 2% annual escalator of revenues to Genesee County and the Elba Central School District, along with a host agreement with the Town of Batavia.

Press release:

Empire State Development (ESD) today announced that dairy product manufacturer HP Hood will grow its operations in Genesee Valley Agri-Business Park. The project will include the addition of new processing systems, along with other upgrades, which will allow the company to increase capacity for the production of additional extended-shelf-life (ESL) beverages at the Batavia facility. As a result, the company has committed to creating up to 48 new jobs at the manufacturing facility. To date, the company has created more than 400 jobs at the site and currently employs close to 1200 statewide. Hood purchased the on-site, 363,000-square-foot plant in 2018 from the Dairy Farmers of America for $60 million and soon after expanded the facility by another 100,000 square feet. HP Hood is the agri-business park’s largest landowner.

“This continued commitment from one of the nation's most prominent dairy companies will create top-quality jobs and spur new investment in the Finger Lakes," said Empire State Development President, CEO and Commissioner Hope Knight. "Agriculture and food processing are key pillars of the region’s economic development efforts, and HP Hood’s latest investment shows that our multi-pronged growth strategy is working." 

ESD is assisting the forward-thinking project with up to $1 million through the performance-based Excelsior Jobs Tax Credit Program in exchange for job creation commitments. The total project cost has been placed at $120 million. Genesee County is also considering providing incentives for the project. Greater Rochester Enterprise also assisted with the expansion effort. Construction on the planned updates is expected to be completed in the first quarter of 2025.

Headquartered in Lynnfield, Massachusetts, HP Hood has five New York State production facilities in Batavia, Vernon, Oneida, Arkport and Lafargeville. Founded in 1846, today, Hood is one of the largest branded dairy operators in the United States. The company’s portfolio of national and super-regional brands and franchise products includes Hood, Crowley Foods, Planet Oat, Heluva Good!, LACTAID®, and Blue Diamond Almond Breeze®. The company’s annual sales are more than $3 billion. 

Gary Kaneb, President and CEO of HP Hood LLC, said, “Our investment in the Batavia facility is being driven by the continued growth of ESL dairy and non-dairy beverage categories. We are grateful for the support of Empire State Development as Batavia continues to be a strategic site for the expansion of our ESL manufacturing capabilities.”

The Genesee Valley Agri-Business Park is located at the heart of the Buffalo-Rochester Tech Corridor. For additional information about the park, visit: http://gcedc.com/agpark.

New York State has a robust, thriving agricultural industry and is home to almost 3,500 dairy farms and 620,000 cows. New York’s dairy industry is also the State’s largest agricultural sector. The majority of farms are family-run operations, supporting the framework of the State’s agricultural economy.

NYS Department of Agriculture and Markets Commissioner Richard A. Ball said, “HP Hood’s expansion in the Genesee Valley Agri-Business Park is good news for New York’s agricultural industry. Not only will this effort create new jobs and support hundreds of existing jobs in the Finger Lakes region, but it will also ensure that consumers, far and wide, can continue to enjoy the delicious, local, award-winning products that HP Hood is known for. I thank our partners at Empire State Development and Finger Lakes Forward for helping to ensure that this project can come to fruition.” 

State Senator George Borrello said, “HP Hood’s investment in its Ag Park operations is a strategic recognition of the quality dairy and agricultural suppliers that surround them, the availability of a skilled workforce and the supportive partners in government committed to their success. This effort is another exciting addition to our region’s dairy industry projects pipeline, which just keeps growing. We are truly witnessing a transformation. Many thanks to Empire State Development, Genesee County officials and HP Hood’s leadership team for the vision and commitment that made this achievement possible.”

State Assemblyman Steve Hawley said, "I'm happy to see Empire State Development's announcement that HP Hood is expanding its operations in our region. Businesses like HP Hood play an important role in our state's agriculture and specifically the dairy industry. Their commitment to add nearly 50 new full-time employees and retention of over 450 employees will provide more support for our local economy. This announcement is great news for our district and will have a positive impact on our community and Western New York as a whole."

Genesee County Legislature Chairwoman Chair Rochelle M. Stein said, “We congratulate the family-owned dairy farms of this region for providing high quality and local milk for HP Hood's growing ESL dairy beverages. This investment by HP Hood adds to the agricultural business foundation of our county and strengthens our regional agribusiness economic synergies from farm to consumer.”

Batavia Town Supervisor Greg Post said, “The Town of Batavia is proud to be home of one of the most recognizable dairy brands in the United States. HP Hood’s growth will result in continued economic benefits to our town and even more career opportunities for our residents.”

Steve Hyde, Genesee County Economic Development Center President & CEO, said, “HP Hood's growth has already exceeded expectations at the Ag Park, and this project adds to the success of the agricultural and food and beverage manufacturing sectors, which continues to be leading employment sectors of our economy. This expansion is another endorsement of Batavia and the Ag Park's role as the leading dairy hub of the Northeastern United States and our local workforce’s talent and readiness for food and beverage manufacturing.”

Finger Lakes Regional Economic Development Co-Chair Bob Duffy, President and CEO, Greater Rochester Chamber of Commerce, said, "This expansion not only strengthens our region’s position as a hub for food and beverage manufacturing but also bolsters job creation and investment. We're proud to see this growth in Genesee County, demonstrating that our efforts to revitalize communities and drive economic prosperity are yielding tangible results. We extend our sincere gratitude to Empire State Development for their commitment to our region's economic growth and look forward to actively supporting HP Hood as they continue to expand and thrive."

There just isn't enough room in the Genesee Valley Ag Park on the east side of the Town of Batavia for a project as large as the Fairlife plant announced today in Monroe County.

The 745,000-square-foot facility will be built by Coca-Cola and create an estimated 250 jobs in the Town of Webster.  The company is expected to invest $650 million in the project.