Chobani

As demand for nutritious, high-quality food products continues to grow, food manufacturers are looking for ways to expand production to meet changing consumer needs. For Chobani, that meant finding a location capable of supporting the production of its new, high-protein and low-sugar milk products – with the infrastructure, resources, and agriculture supply needed for a large-scale manufacturing operation.

The company found that opportunity in Pennsylvania. Chobani’s $1.2 billion investment in the Lehigh Valley – the largest ever private investment in the state’s agriculture industry – will create 900 new jobs and bring significant new demand for Pennsylvania dairy, while reinforcing the Commonwealth’s position as a leader in the agriculture industry.

Additionally, Chobani cited the Lehigh Valley’s strategic location as another reason for selecting the site. The facility is located within 500 miles of 40 percent of the U.S. populace, allowing for quick and efficient access to some of the country's largest consumer markets. The facility itself – a former Keurig Dr. Pepper plant – is also an ideal fit. Chobani plans to equip the facility with up to 10 production lines, which gives the company the ability to scale its new production and develop new products using Pennsylvania dairy milk.

Impact on PA’s dairy industry

As large as the investment and job creation numbers are, the true impact of the project is much more significant. When Chobani ramps up to full production, the facility will require more than 3 billion pounds of milk every year – about 30 percent of Pennsylvania’s current total dairy production. The increased need for Pennsylvania milk means dairy farmers will reap the benefits as they expand and grow to meet that demand.

“This is a generational investment, and a generational opportunity for our dairy farmers,” Governor Josh Shapiro said during the announcement event. To help Pennsylvania’s 4,300 dairy farmers meet the additional demand, the Commonwealth is committing $127 million to help them expand their herds, speed up the permitting process so they can expand more quickly, and allow them to buy equipment and address critical infrastructure needs on their farms.

In addition to identifying key industries, the strategy also lays out several tools to support growing those sectors. One of the components of the Commonwealth’s support of Chobani is a $50 million PA SITES package which played a critical role in securing the project for Pennsylvania. That program stemmed from the strategy calling for a significant increase in funding for pad-ready site development – which in turn led to Governor Shapiro securing the funding for the $400 million PA SITES program designed to grow the Commonwealth’s inventory of pad-ready sites. PA SITES helps bring sites to market faster by funding better transportation access, utility connections, and other site preparation activities. In doing so, the program is enabling Pennsylvania to compete for even more medium and large-scale economic development projects.

“The strategy we built together three years ago led to the creation of the PA SITES program,” said Pennsylvania Department of Community and Economic Development Secretary Rick Siger. “It helped us create an environment with the tools and the team to win deals like this. This is what it looks like when we execute on that vision.”