Celebrating Cayuga Milk Expansion Project

Governor Kathy Hochul and Cayuga Milk Ingredients today marked the grand opening of a two-phase, $270 million expansion project in the Town of Aurelius, Cayuga County, allowing the company to better assist their clients and create opportunities for New York State dairy farmers. The state-of-the-art facility will also allow the company to more than double its workforce, adding up to 150 new jobs to the existing workforce of 100 employees. The State is supporting this transformative project through a $4 million capital grant and up to $4 million made available through the performance-based Excelsior Jobs Tax Credit Program in exchange for job creation commitments. Cayuga Milk Ingredients is a farmer-owned dairy processor, producing premium milk and innovative dairy ingredients for customers across the globe. This announcement comes as the State celebrates Dairy Month this June.

“Cayuga Milk Ingredients’ continued expansion in Cayuga County marks another exciting chapter in New York’s agricultural success story,” Governor Hochul said. “New York’s dairy industry serves as a crucial economic engine for our state, and our support for this project reinforces our commitment to those efforts and to our hard-working dairy farmers, further cementing our position as one of the nation’s top dairy producers.”

Phase one of the expansion at the Eagle Drive facility included the purchase and installation of an ultra-high temperature (UHT)/aseptic low acid packaging system and a new reverse osmosis filtration system. The second phase included the addition of machinery and equipment, and the expansion of the facility’s wastewater treatment plant.

At the facility, Cayuga Milk Ingredients (CMI) monitors all aspects of product integrity, offering a high level of traceability and sustainability, combining innovative manufacturing technology with a focus on reducing their environmental impact. With a vertically integrated model and state-of-the-art processing capabilities, they transform high-quality milk into value-added products including high-protein milk, powders, and ultrafiltered dairy ingredients. CMI is committed to advancing sustainable agriculture, supporting the well-being of its farmers, employees and cows, and delivering exceptional ingredients for the future of food.

CMI processes over 1.5 billion pounds of premium quality milk from 22 family-owned dairy farms within the region. The farmer-owners are recognized globally for their higher level of commitment in animal welfare, environmental sustainability, and worker wellness all based around a culture of continuous improvement.

CMI is also actively focused on reducing their environmental impact. The advanced processing at the state-of-the-art production facility, which incorporates ultrafiltration and cutting-edge industry technologies, has positioned the company as a unique leader in the global foods market, setting them ahead of the curve for quality manufacturing standards.

Cayuga Milk Ingredients and Cayuga Marketing CEO Brian Linney said, “Cayuga Milk Ingredients is proud to be a key player in New York's dairy industry, with the investment in our new aseptic and extended shelf-life fluid dairy production facility driving long term growth in our community with more than 150 new permanent jobs, as well as another 350+ jobs during facility construction. We are grateful for the support of Governor Hochul in this project expansion as we work to ensure the continued success and longevity of the agricultural industry in New York State.”

Governor Hochul remains laser focused on supporting New York’s dairy farmers. Earlier this month, the Governor announced nearly $21.6 million had been awarded to 103 farms across the state through the Dairy Modernization Grant Program to support New York’s dairy industry. The funding will help New York’s dairy farmers and dairy cooperatives invest in new equipment, expand storage capacity, and strengthen their operations, particularly as they face extreme weather events, providing a critical boost to New York’s dairy industry.

Since taking office, Governor Hochul has made significant strides in expanding the dairy manufacturing sector in New York. In the last few years, New York has celebrated investments across the state, including a $650 million fairlife production plant in Webster, a $518 million Great Lakes Cheese packaging and manufacturing facility in Franklinville, and a $30 million expansion to the Agri-Mark cheese manufacturing facility in Chateaugay, helping New York continue to be the leading producer of milk in the Northeast. Most recently, the Governor announced Chobani will build a 1.4 million square foot, $1.2 billion facility in Rome, Oneida County, capable of producing over one-billion pounds of high-quality dairy products per year. There are currently nearly 300 world-recognized dairy processing plants across New York.

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.

New York State Agriculture Commissioner Richard A. Ball said, “New York is a dairy state, through and through. We have thousands of dedicated dairy farmers, producing some of the very best products in the world, and we rank as number one for yogurt, sour cream, cream cheese, and more. I thank the Governor for her commitment to uplifting New York’s dairy community, from the on-farm grants announced earlier this month to investing millions in processing capacity across the State over the years, with the help of our partners at Empire State Development. Together, we are building a strong foundation to support our farmers and boost our agricultural economy.”

Empire State Development President, CEO and Commissioner Hope Knight said, “We’re excited to mark this major milestone with Cayuga Milk Ingredients, a project that will continue to fill the region’s economic glass to the brim with top-quality jobs that support Upstate dairy farmers. This successful company is putting down roots thanks to our unmatched agribusiness infrastructure that ensures New York State remains a leader in dairy production.”

State Senator Rachel May said, “The dairy industry in Cayuga County is thriving, and Cayuga Milk Ingredients is at the forefront of this growth. With its impressive multi-million-dollar expansion, the company will continue to be a catalyst for economic growth in our community for years to come, creating many well-paying jobs for residents. I appreciate Governor Hochul’s support for this important project and our dairy farmers in Central New York.”

Cayuga County Legislature Chairman Jonathan Anna said, “We applaud Governor Kathy Hochul and Cayuga Milk Ingredients on the grand opening of this transformative $270 million expansion project in the Town of Aurelius. This significant investment represents a bold step forward for Cayuga County's dairy industry — as the number one dairy producing county in the state this project continues to support not only innovation and global competitiveness but also our local communities and family farms. As a farmer-owned cooperative, Cayuga Milk Ingredients exemplifies the spirit of collaboration and agricultural excellence that defines our county. The creation of up to 150 new jobs and the expansion of cutting-edge processing capabilities are a testament to what can be achieved when public and private sectors work together. We are also grateful for the State’s strategic support through the $4 million capital grant and the Excelsior Jobs Program, which ensures job growth and long-term economic impact to our region. During Dairy Month, this announcement reminds us of the strength, resilience, and essential contributions of our dairy farmers and processors. Congratulations to all involved in making this project a reality. Cayuga County looks forward to seeing Cayuga Milk Ingredients continue to thrive and lead the way in delivering premium dairy products to consumers not only locally but around the world.”

For additional information about Cayuga Milk Ingredients, visit: https://www.cmingredients.com/.

Accelerating Economic Development in Central NY
Today's announcement complements “CNY Rising,” the region’s comprehensive strategy to generate robust economic growth and community development. The regionally designed plan focuses on capitalizing on global market opportunities, strengthening entrepreneurship and creating an inclusive economy. More information is available here.

About Empire State Development
Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.