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SCHNECKSVILLE, Pa. -- Pennsylvania Governor Josh Shapiro, Department of Agriculture Secretary Russell Redding, Department of Community and Economic Development Secretary Rick Siger and Department of Revenue Secretary Pat Browne recently announced the Commonwealth has secured a historic $1.2 billion investment from Chobani to establish its first dairy product manufacturing operation in Pennsylvania. This project, the largest ever private investment in Pennsylvania's agriculture industry, will create 900 full-time jobs over the next five years in the Lehigh Valley and greatly expand markets and opportunities for more than 4,000 dairy farmers in Pennsylvania.
"I've spent a lot of time on our farms and in our rural communities, hearing directly from Pennsylvanians about the kind of investments they want to see in our Commonwealth. 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," said Governor Josh Shapiro. "Pennsylvania is aggressively competing for, and winning, the biggest economic development projects in the country because we’re making strategic investments, moving at the speed of business, and giving companies confidence that they will thrive here, and I'm proud this investment will benefit our dairy industry and rural communities."
Chobani will assume operations of Keurig Dr. Pepper's manufacturing facility, equipment, and related infrastructure, where Chobani plans to manufacture innovative food products beyond yogurt.
The 1.5 million-square-foot facility, located at 7356 Industrial Boulevard in Upper Macungie Township, will accelerate Chobani's ability to innovate and produce the next generation of better, more wholesome foods while creating new opportunities for Pennsylvania workers, farmers, and suppliers.
When fully operational, the facility is expected to process more than three billion pounds of Pennsylvania milk annually -- equivalent to approximately 30 percent of all milk currently produced in the Commonwealth -- the largest increase in demand for Pennsylvania dairy in the state's history. The project will create a significant new market for the Commonwealth's family dairy farms, helping them grow and strengthen their businesses for generations to come.
"Pennsylvania is home to one of the highest number of family-owned farms in the country. When we walked into this factory, we knew it was a great fit for what we want to build for the future," said Hamdi Ulukaya, Founder & CEO of Chobani. "There were many challenges along the way, and this project would not be possible without Governor Shapiro and his team bringing people together and finding ways to move things forward. I want to thank the Governor's team, Senator McCormick, our local leaders, and most of all, the farmers who make all this possible. We're so happy to be here bringing our future innovation to life in Allentown, made with fresh Pennsylvania milk and delivered to families across the country."
This investment by Chobani is a major step forward for Pennsylvania's dairy industry and, most importantly, for the farm families who are its foundation. Pennsylvania has the second highest number of dairy farms in the nation - and agriculture is a key pillar of Governor Shapiro's economic development plan. For years, the Commonwealth's dairy farm families have been eager for more processing and market access opportunities. This historic project brings expanded processing capacity and increased demand for Pennsylvania-produced milk, strengthens the Commonwealth's dairy supply chain, and keeps more of the economic value of Pennsylvania milk within the state.
"This announcement is the biggest change for our dairy industry in a generation and represents the culmination of a journey built on collaboration, persistence, and a shared belief in the future of Pennsylvania dairy," said Agriculture Secretary Redding. "Since day one, 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. His commitment has been to ensure Pennsylvania is not only a great place to farm, but also a place where agricultural businesses choose to invest, grow, and add value."
The Governor's BusinessPA team worked with Chobani to build out the agricultural and public infrastructure necessary for a project of this scale. To support Chobani's investment in Pennsylvania, 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 necessary for the project and broader regional economic development.
Additionally, the Commonwealth will continue to drive out $127 million in loans and grants available directly to eligible Pennsylvania dairy farmers to meet the significant new demand for Pennsylvania milk products.
Chobani may also be able to access tax credits through the Department of Revenue's Pennsylvania Economic Development for a Growing Economy (PA EDGE) program's Pennsylvania Milk Processing Tax Credit in the future.
"Chobani's historic investment in Pennsylvania is a tremendous win for our Commonwealth, our economy, and our agriculture industry," said DCED Secretary Siger. "This project in the Lehigh Valley will further strengthen Pennsylvania's world-class dairy industry by creating new opportunities for our farmers, supporting local suppliers, and building a stronger food manufacturing ecosystem. Governor Shapiro's economic development strategy is focused on making bold investments like this one that support businesses and create real opportunity for Pennsylvanians."
For Chobani, the investment is about more than establishing a new manufacturing operation. It is about putting down roots in the Commonwealth and becoming part of the communities surrounding the facility.
Chobani will bring competitive wages and industry-leading benefits while creating opportunities for more than 900 people to build careers in advanced food manufacturing.