WCMA Notes: Amid Challenges, Dairy Has All the Right Ingredients to Win
There is a number on the minds of all in American dairy processing right now: 11 billion. It’s the number of dollars committed to more than 50 new and expanded dairy production projects through early 2028.
That remarkable amount is made still more so by the environment in which these investments are taking place. Dairy companies are navigating trade volatility, rising costs of production – particularly related to milk, fuel, and equipment, workforce shortages, infrastructure constraints, and a dynamic policy and regulatory environment. Capital is being invested in what could be described as a challenging, unpredictable business climate.
And yet, it’s happening.
I had the opportunity to explore why this week at the Wisconsin Cheese Makers Association’s Annual Member Meeting, during our keynote panel, “Value-Added Ventures: How Dairy Leaders Are Investing in Dairy’s Strengths.” The discussion featured executives from three companies making significant investments of their own: Jenny Drake, Vice President of Operations at Grande Cheese Company; Brianne Maier, Vice President of Dairy Foods Research and Development at Land O’Lakes; and Derek Miller, Vice President of Communications at Lifeway Foods.
What came through clearly was that these leaders’ bullish outlook isn’t based on ignoring the challenges. It is based on what they’re seeing from consumers.
“Protein demand continues to be one of the strongest trends in food and beverage industry and is creating great opportunity for dairy,” said Maier. “At Land O’Lakes, we are investing in innovation and expanding our new product pipeline to bring new products and ingredients to market. One of these investments is at our Tulare, California manufacturing plant where we are bringing on Ultra-Filtrated 85 (UF-85) capacity this spring.”
“People are making a return to natural foods, and dairy is something they know and they trust,” said Miller, highlighting Lifeway’s $50 million project in Waukesha, Wisconsin, which will double the site’s manufacturing capacity and improve packaging efficiency. Lifeway sees significant opportunity at the intersection of cultured dairy, probiotics and protein, including new applications. “We’ve got this new product called Lifeway Muscle Mates, and it has 20 grams of whey protein and probiotics, but also five grams of creatine. All we need to do with dairy is ‘zhuzh’ it up a little to create disruptive, profitable moments on the shelf.”
Panelists agreed that value-added growth – even to the degree our industry is experiencing today – can be supported by relatively modest shifts.
Sometimes it means taking something consumers already know and making it more convenient, more functional or more relevant. Sometimes it means investing in automation or process improvements that make a plant more efficient. Sometimes – as is the case for Grande Cheese – it means helping a customer sell more of its own product, or entering a new market or geography.
“We have a fantastic sales team that is boots-on-the-ground here, but we’re looking globally. Can we replicate this success in other countries? We’re in Mexico now, and we’re seeing big wins there from the development of its pizza culture,” said Drake, detailing one driving factors behind a major expansion project the award-winning Italian cheese manufacturer recently completed in Chilton, Wisconsin.
But the panel also made clear that investment in dairy’s future extends well beyond bricks, mortar and equipment. The industry’s ability to capitalize on its strengths will depend just as much on how we use emerging technologies, improve efficiency and sustainability, and build the workforce needed to operate and innovate within these facilities.
“With the Chilton project, we revisited the job descriptions that were traditional in some of our legacy locations and made adjustments,” said Drake. “Instead of turning prospects away who didn’t have technical skills to qualify for a position, we are partnering with a local technical college to give them that knowledge via onboarding.”
Maier noted Land O’Lakes’ move to implement artificial intelligence as a practical tool, “AI's biggest value is helping people make better decisions faster, not replacing people.”
“Our new ERP system is great for production planning and forecasting – and for sales, AI is giving us normalized rates and insights on promotions. It can be a great tool, as long as we maintain real, human communication and authenticity,” said Miller.
Taken together, these examples point to a broader definition of investment, strengthening every element that goes into dairy production – and to continued strength ahead.
Maier put it simply: “We have all the right ingredients to win.”