$75M for NYS Dairy Manufacturing Facilities

Governor Kathy Hochul today announced Lactalis USA will invest more than $75 million to upgrade both its Walton and Buffalo facilities, enabling them to expand capacity and gain efficiencies. The projects in Delaware and Erie counties include the purchase of new equipment and upgrades that will allow the dairy manufacturer to retain more than 800 full time jobs and create more than 50 new jobs. Lactalis USA is part of Lactalis, the world’s largest dairy company, and has chosen to expand in New York State thanks in part to support from the Governor and Empire State Development.

“New York will continue to work with businesses in the agri-food sectors as they expand and grow to ensure good-paying jobs remain in our communities,” Governor Hochul said. “By investing in the Lactalis USA facilities and assisting with improvements, New York is retaining hundreds of jobs and adding new jobs, as well as helping to support the region’s dairy farmers.”

The Walton plant, located at 261 Delaware Street, produces Breakstone’s Sour Cream and Cottage Cheese. It will undergo a $15 million modernization, focusing on automating and expanding the cottage cheese and sour cream production lines, enhancing efficiency, capacity, and sustainability. Currently, the facility has limited capacity, while market demand for nutritious high-protein foods is increasing. The facility also relies on technology that requires extensive maintenance, and the improvements will increase versatility for product innovation. The project will include new fillers, HEPA air filtration, advanced lab equipment, new roofing, boiler upgrades, and several other improvements to the facility. The upgrades will result in a 30% boost in output and create more than 20 new jobs.

The Buffalo plant, located at 2375 South Park Avenue, produces Galbani Ricotta, Mozzarella and Provolone cheese, along with whey powder that is distributed across the U.S. and abroad. The $60 million expansion includes the installation of six 50,000-pound vats, an advanced cheese belt, separators, silos, and a robotic palletizer. Building remodeling will include relocating the cheese lab to maintain production, increasing mozzarella and provolone production by 37 million pounds annually. Ricotta production will also be expanded, and new energy efficient technology will be added. With the addition of this expansion project, Lactalis USA has committed to investing a total of approximately $123 million in its Buffalo facilities from 2020 through the end of 2027.

In addition to creating jobs, both plants support the region’s agricultural economy by processing more than 800 million pounds of raw milk annually from 236 local dairy farmers.

Lactalis USA CEO Esteve Torrens said, “Lactalis has two plants in New York State that are key to our growing business in the United States. Our Buffalo plant is home to a significant ricotta and mozzarella production under the Galbani brand. Our Walton plant continues a rich tradition since 1882 of producing Breakstone’s Sour Cream and is essential to strengthening our cottage cheese business in a rapidly growing category. We are committed to supporting the communities of Buffalo and Walton as we continue to grow in those markets and we thank Gov. Hochul and ESD for their support.”

ESD is offering $750,000 in Excelsior Jobs Program tax credits for the Walton project (which is in an economically distressed community) and $550,000 in tax credits for the Buffalo project in exchange for Lactalis’ job retention and creation commitments. The projects are expected to be completed in 2027.

Empire State Development President, CEO & Commissioner Hope Knight said, “The direct impact of Lactalis remaining and growing in Walton and Buffalo is hundreds of cheese manufacturing jobs but indirectly the plant also supports area dairy farmers by purchasing more than $180 million worth of milk each year, making the projects a win for both the manufacturing and agricultural sectors.”

New York State Agriculture Commissioner Richard A. Ball said, “This investment in Lactalis’ existing facilities in Buffalo and Walton is a win-win, retaining hundreds of jobs and adding new jobs, as well as ensuring New York State remains a leader in the dairy industry for years to come. This expansion is great news for the dairy farmers that supply fresh, local milk for the Lactalis cheese manufacturing facilities, which have a long-standing tradition of producing some of New York’s highest quality dairy products. I look forward to seeing these plants continue to grow and bring more fresh, delicious dairy products to families across the state.”

The largest sector of the agricultural industry, New York’s dairy industry is a critical component of the State's economy. New York State is home to nearly 3,000 dairy farms with 630,000 cows, producing 16.1 billion pounds of milk. New York ranks fifth in the production of milk and is first in the nation in the production of yogurt and cottage cheese.

State Senator April Baskin said, “This investment by Lactalis is more than just an upgrade to its facilities, it’s a commitment to the people, the farmers, and the traditions that define New York’s dairy industry. From Walton to Buffalo, this expansion is creating opportunities, preserving livelihoods, and ensuring that New York remains at the forefront of dairy innovation. It’s proof that when we invest in our communities and our industries, we’re building a stronger, more sustainable future for everyone.”

State Senator Peter Oberacker said, “Generational family-owned farms in the 51st District set the gold standard for dairy excellence nationally and this investment is a powerful testament to that legacy. I’m proud to see Lactalis expand in our region and grateful for their commitment to our family farms, our local workforce, and the future of agriculture in upstate New York,"

Assemblymember Patrick Burke said, “I’m proud to see continued investment in a facility that has long been part of our neighborhood’s industrial backbone. Lactalis’ expansion secures good-paying jobs, supports local farmers and boosts key sectors of our statewide economy. It’s a big win for South Buffalo, and a sign that our dairy economy remains strong, steady and well cultured.”

Erie County Executive Mark C. Poloncarz said, “The Lactalis Buffalo facility is not only a large local employer but a vital partner for Erie County’s dairy community, with fresh local dairy products heading there to be processed and sent out to the worldwide community. This investment is great news for the Lactalis plant, its workers and all the ancillary workers in the local dairy field who will benefit from this expansion. I thank Governor Hochul for her work in bringing this investment to fruition and I look forward to the expansion of Lactalis in Erie County.”

City of Buffalo Mayor Christopher Scanlon said, “Lactalis’ continued investment in Buffalo is a powerful vote of confidence in our city, our workforce, and our role in New York’s dairy industry. This $60 million expansion will not only create new jobs and modernize their South Park Avenue facility, but it will also strengthen the connection between our local economy and family-owned dairy farms across the region. I want to thank Governor Hochul and Lactalis USA for their commitment to Buffalo and for supporting good-paying, sustainable jobs right here in our community.”

About the Dairy Industry in New York State

New York State has roughly 3,000 dairy farms that produce over 16 billion pounds of milk annually, making New York the nation’s fifth-largest dairy state. The dairy industry is the state’s largest agricultural sector, contributing significantly to the state’s economy by generating nearly half of the state’s total agricultural receipts and providing some of the highest economic multipliers. New York's unique and talented dairy producers and processors contribute significantly to the state’s agriculture industry, economy and the health of our communities.

About Lactalis USA

Lactalis USA is committed to enriching lives by producing nutritious and great tasting dairy products. The company offers an unrivaled house of beloved dairy brands in the United States including Galbani® Italian cheeses, Président® specialty cheeses and gourmet butters, Kraft® brands in natural and grated cheeses, Breakstones® cottage cheese, ricotta and sour cream, Cracker Barrel® cheese, Black Diamond® cheddar cheese, Parmalat® milk, siggi’s® and Stonyfield Organic® yogurt brands. In the United States the company has approximately 4,000 employees, is present in eight states with 11 manufacturing facilities and corporate offices located in New York City and Buffalo, N.Y., Chicago, Ill., Bedford, N.H., and San Fernando, Calif. Lactalis USA is part of Lactalis Group, the world’s leading dairy company, a French family business founded in 1933 in Laval, France.