Wisconsin dairy processors to invest US$781 million

While the recession has reduced spending power for Wisconsin dairy processors, they still plan to invest US$781 million in their plants in the next five years.

Wisconsin dairy plants spent US$1.24 billion on upgrades to equipment and facilities in the in the past five years, according to a recent survey by the National Agricultural Statistics Service (NASS).

About 185 plants were surveyed, with 68 percent of them responding. Four out of five dairy processors plan to expand in the next five years, with one in five expecting the amount of milk processed to increase by 26 percent or more. Only three percent of processors expected to handle less milk.

Companies making less than five million pounds of dairy products per year spent the most money, a combined US$414 million, while larger companies spent a combined US$388 million, NASS reported.

With the recession, companies plan to spend less, and most investment will likely come from bigger companies in the next five years, NASS said.

Companies are also reportedly planning to invest US$93 million in making whey products and US$296 million in other dairy operations.

Most of the investment will go to buildings and processing equipment, but companies are expected to spend more on waste treatment and utility upgrades.

Wisconsin's agriculture industry is valued at US$51 billion per year, with much of it coming from the dairy sector.