Kansas Dairy Ingredients to build new plant in Kansas

Kansas Dairy Ingredients plans to invest more than $20m to build a dairy ingredient and cheese plant in Hugoton, Kansas, US.

The company will start construction of the plant in May 2012 and expects to begin plant operations in the fourth quarter of 2012.

Initially, the plant will process about 1 million lbs of milk per day and produce fractionated dairy ingredients, which can be used as functional ingredients in a variety of dairy and food products.

In 2013, the company plans to expand the plant and by the end of that year, it will process a total 2.5 million lbs of milk per day, adding cheese and other dry milk ingredients to its production.

Stevens County Economic Development director Neal Gillespie said the new plant will provide good jobs, diversify the economy and add to the tax base.

"A processing plant will be a catalyst for the continued growth of this industry that is so beneficial to our local economies," Gillespie added.

Kansas Dairy Ingredients, currently based in Missouri, also plans to relocate its business operation offices at Kansas City and Hugoton in Kansas.

Kansas is one of the leading dairy growth states in the US, with around 400 dairy farms, 12 dairy processing plants, and 68 milk and dairy distributors.

According to the US Department of Agriculture (USDA), milk production in the state was 221 million lbs in January 2012.