US dairy industry invests $15bn in new processing capacity across 23 states

US dairy industry invests $15bn in new processing capacity across 23 states
US dairy industry invests $15bn in new processing capacity across 23 states (Getty Images)

US dairy processors are investing more than $15 billion in new and expanded manufacturing capacity across 23 states as they prepare for future growth, the International Dairy Foods Association (IDFA) has said.

Analysis from the organisation shows that more than 85 projects are planned or already underway through 2030.

The investments span almost every major dairy category and include new plants, facility expansions, additional processing lines and modernisation projects. IDFA said that the activity reflects strong confidence in the future of US dairy, with companies increasing capacity to produce more high-protein, nutrient-dense products to meet growing domestic demand and expand export opportunities.

The investment drive comes as dairy manufacturing is projected to outpace the wider manufacturing sector in both employment and output growth over the next decade in the US.

According to the US Bureau of Labor Statistics, employment in dairy product manufacturing will increase by 5.6% from 2025 to 2035, compared with 3.5% growth for total US employment and just 0.6% for manufacturing overall. Inflation-adjusted dairy manufacturing output is projected to rise nearly 30%, from $138.5 billion to $179 billion over the same period.

America’s dairy industry is investing for growth,” said Michael Dykes, IDFA President and CEO.

“More than $15 billion in new capacity and modernized facilities and economic opportunity for communities across 23 states. Dairy companies are putting capital to work because they see growing demand for dairy foods in the US and around the world.”

The US dairy manufacturing industry has around 1,200 processing plants supplied by nearly 24,000 American dairy farms. Across the broader dairy economy, the industry supports more than 3.05 million jobs, generates $197.6 billion in wages, contributes $779.45 billion in overall economic impact and generates more than $83 billion in state and local taxes, the IDFA revealed.

Investments by product category

  • Milk/Cream: $5.63 Billion
  • Cheese: $3.76 Billion
  • Yogurt & Cultured Dairy: $3.07 Billion
  • Butter & Powders: $1.86 Billion
  • Ice Cream: $745 Million