Dairy company Chobani announced a $1.2 billion investment to build a major dairy production facility in Pennsylvania, a project expected to create 900 jobs over the next five years.
The New York-based company said the investment will expand its presence in the state and strengthen its dairy production capabilities while supporting local agricultural communities.
Largest Private Agricultural Investment in Pennsylvania
According to Pennsylvania Governor Josh Shapiro’s office, the project represents the largest private investment in the state’s agriculture industry. The facility is expected to process nearly 3 billion pounds of milk annually.
“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,” Shapiro said.
The 1.5 million-square-foot facility in Allentown originally opened in 2021 and is located within 500 miles of approximately 40% of the U.S. population, giving Chobani access to a significant consumer market.
Chobani Expands Dairy Operations
Chobani founder and CEO Hamdi Ulukaya said Pennsylvania’s dairy industry produces some of the best milk in the country and highlighted the facility’s existing infrastructure, equipment and workforce as key reasons behind the investment.
“There’s already an incredibly talented team here that knows how to make great food. The foundation is strong. And we have an opportunity to build something extraordinary on top of it,” Ulukaya said.
Production under the Chobani brand is expected to begin next year. Existing employees will be retained, while remaining workers at the facility will receive opportunities to join the company.
State Support for Dairy Industry Growth
Pennsylvania will provide Chobani with $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program.
The state will also provide up to $127 million in loans and grants to eligible dairy farmers to help them meet the expected increase in demand for dairy products created by the expansion.
Chobani Continues Expansion Strategy
The investment follows Chobani’s recent expansion efforts, including its $900 million acquisition of Philadelphia-based coffee company La Colombe in 2023. La Colombe is expected to continue operating independently with its existing management team.
Beyond Pennsylvania, Chobani also plans to expand its Norton Shores, Michigan facility, which produces La Colombe beverages.