Editor’s Note: This is the second in a three-part series describing a tour of Chenango County agriculture that was offered this month to New York State’s elected officials. The bus stops highlighted the county’s unique ag businesses, but also pointed to the governmental regulations that challenge them.
Chenango County forked over much more than a bail of hay last week to New York State officials who toured a unique sampling of three enterprises that make up the local agricultural industry.
After first pitching an inside look at the workings of an environmentally sound, resource conscious and successful farm – the Tumilowicz Dairy in Norwich – the tour bus proceeded to an end user that is creating a massive, new market for milk – Agro Farma Inc.
Approximately 35 spectators filed into a conference room at the former Procter & Gamble Pharmaceuticals plant at Woods Corners in Norwich to learn how the parent corporation of the nation’s number one Greek-style yogurt, Chobani, has grown from a start-up, five-employee business back in 2005 to employing nearly 400 today.
With corporate headquarters in Norwich and its manufacturing facility in the former Kraft plant in nearby South Edmeston (in the Town of Columbus), Agro Farma has taken the entire yogurt industry by storm. Last week’s opening of Champions Field, which Agro Farma built for the Village of New Berlin, on top of announcements of an acquisition in Australia and a $90 million expansion planned at the South Edmeston plant made for an especially timely trip.
Agro Farma has grown by more than 250 percent over the past year. The plant is receiving upwards of 25 million pounds of milk per week, making it the country’s largest Class II milk processing facility. And talking about a hiring mode! With the completed expansion, which could be by the end of 2012, there may be anywhere from 675 up to 1,000 employees on board.
When peppered with questions about the company’s demand for milk, Environmental Health and Safety Director Dave Sheldon said he’s learned not to make solid predictions for the future.
“We don’t know when the market is going to level off,” he said.
Agro Farma can be credited with single-handedly increasing the demand for dairy throughout the Northeast. Sheldon estimated the company could grow by another 50 percent by year’s end, with full capacity at 80 tanker trucks of milk delivered daily. Already the South Edmeston plant is pulling in supplies from New York, Vermont and Massachusetts farms. Suppliers from Pennsylvania and Virginia could be next.
The demand for dairy – and yogurt – is growing internationally as well. With production of the Chobani brand at the new wholly-owned subsidiary in Australia, Sheldon said New Zealand would be ramping up its production to serve them.
“If demand grows in other parts of the world like this, it’s going to increase demand for our milk and help our farmers,” Sheldon said. The United States currently exports between 12 to 14 percent of the world’s milk.
Milk distribution hurdles