With dairy farmers struggling, state and county governments are looking to bring cheese manufacturers to the state to find a use for local farmers’ milk.
Centre County Commissioner Mark Higgins has been studying the crisis facing dairy farmers for the past year, and is looking for solutions.
The price that farmers can get for milk has gone down steadily, as their farms produce more milk than is needed. With better production and a population that is aging in western Pennsylvania, there is less demand for the milk, said Higgins.
“Younger people drink milk, and the fact of the matter is that the population in Western Pennsylvania is getting older,” said Higgins.
Higgins said a recent study commissioned by Gov. Tom Wolf shows that more than 5 million gallons of milk per day from Pennsylvania is being shipped to Wisconsin to be made into cheese. That cheese is often shipped back to the eastern part of the country. The shipping cost of the milk to Wisconsin is incurred by the Pennsylvania farmers. The good thing is that they have a place to sell their milk, but the plan in the state is to find a way to bring cheese manufacturers to Pennsylvania.
The commonwealth is actively seeking to bring two large cheese manufacturers to Pennsylvania. According to Higgins, the plan is to attract one to Berks County and one to south-central Pennsylvania, or possibly Centre County.
The governor’s study found that two new plants in Pennsylvania for processing “other” cheeses — non-American types, including Italian and specialty cheeses — could significantly reduce overall supply chain costs, enhance the marginal value of milk for producers and create more than 1,000 jobs, while also adding $1.5 billion in economic activity to the state.
The study looked at the economic impact of the change in milk prices if the state were to see 21 different dairy farmers add processing to their operation and a scenario that would see the additional large cheese-making plants opening in the state. In either case, the new plants could keep more than 20 percent of the state’s milk in Pennsylvania instead of it being shipped elsewhere for processing.
By keeping more milk in the state, the shipping and hauling cost would be reduced for area farmers. That would add up to between $35 million and $48 million per year in shipping savings.
The study indicated the savings would justify the initial investment in opening new processing plants, which would cost between $430 million and $600 million. Such investment would increase the value of dairy products produced in Pennsylvania by between $599 million and $921 million, add between $1.5 billion and $2.3 billion in additional economic activity and create between 1,100 and 1,700 jobs.
Facilities that produce non-American-type cheeses offered the greatest benefits, but the report noted that the state and its dairy farmers would also benefit from plants specializing in other products, such as ice cream, whey protein concentrates lactose and Greek yogurt.
Higgins said a large cheese factory would be a huge boost for the county, and he thinks Centre County would be a great place for it, by providing jobs and keeping the water that is a byproduct of the dairy process in the county ground water supply.
Higgins has asked SEDA-COG, an 11-member council of area county governments, to find solutions. He said the group has grants available for people who might be looking to open up smaller cheese and yogurt processing plants in the area. He said he is hoping that by bringing in some dairy producers, the county can help, along with the state.
“We are going to let the state swing for the home run, and we are working on hitting singles and doubles,” said Higgins. “But, if we can get a few smaller producers up and running, it all adds up.”
For the 130 dairy farmers in Centre County, every bit would help. Higgins said he has heard that on holiday weekends, dairy farmers sometimes have to pour milk down the drain into the sewer because there is nowhere else to go with it. Production of milk doesn’t stop just because it is a holiday, and the farmers can’t afford to pay overtime, so some farms have no place to go with the milk.
Higgins said Centre County consumers can help by making sure they drink milk that comes from Pennsylvania, and drink a lot of it.
“After all, it is a healthy thing to drink,” said Higgins.
