The Biggest Wins of 2025 for the New York Dairy Industry
New York dairy farmers work hard every day to keep milk flowing, communities strong, and local food systems resilient. In 2025, that work was matched by major investments and statewide support that strengthened the entire dairy supply chain from the farm to the processing plant to the jobs that anchor rural towns. Here are five of the year’s biggest wins and what they mean for local agriculture.
1. A $75 Million Investment Strengthens Two Processing Facilities
One of the most encouraging developments this year came from Lactalis USA, which committed over $75 million to upgrade its dairy plants in Walton and Buffalo. The investment will modernize equipment, expand production capacity, and support more than 800 existing jobs while creating over 50 new ones.
For farmers, these upgrades mean steady demand for local milk and long-term confidence in two facilities that have served New York communities for generations. The improvements also position both plants to support new dairy product lines and operate more efficiently. This is a clear sign of continued growth in New York’s processing infrastructure.
2. More Than $21 Million in Grants Help Farmers Modernize
Over 100 farms across New York received a major boost through the Dairy Modernization Grant Program, which awarded more than $21 million for on-farm improvements. Farms can use the funding for things like updated storage, transport upgrades, and efficiency-building equipment.
The program is designed with resilience in mind. Every funded project must show progress toward goals such as reducing energy use, improving food safety, preventing milk dumping during emergencies, or strengthening long-term farm viability. For many farmers, this support allows them to adopt technology and practices that would otherwise be out of reach, helping keep family farms competitive in a quickly changing industry.
3. $15.8 Million Invested in Sustainability and Methane Reduction
New York also doubled down on climate-smart farming in 2025. Through the first round of the state’s Enhanced Nutrient and Methane Management Program, 22 dairy farms received a combined $15.8 million to improve manure management and reduce greenhouse gas emissions.
These projects include upgrades that protect waterways, support healthier soils, and reduce methane through precision feed strategies and advanced manure systems. Collectively, the funded improvements are estimated to reduce emissions at a level comparable to removing tens of thousands of gas-powered cars from the road each year. For farmers, the goal reaches far beyond environmental compliance. The focus is on equipping operations with the tools to remain productive, sustainable, and adaptable for decades to come.
4. Cayuga Milk Ingredients Launches a $270 Million Expansion
In Aurelius, Cayuga Milk Ingredients, a processor owned by local farmers, completed a major $270 million expansion that signals a new era for value-added dairy in New York. The project brings advanced aseptic and extended shelf-life production capabilities, helping the company diversify its product lineup and reach new markets.
The expansion also fuels economic growth: up to 150 permanent jobs are expected to be added, along with hundreds of construction jobs during the build. With state support behind the project, this investment shows what is possible when farmers and processors innovate together. It also strengthens the state’s ability to turn local milk into higher-value products that benefit both producers and rural communities.
5. A Statewide Processing Boom Totals Over $2.4 Billion in Investment
Perhaps the biggest overarching story in 2025 is the scale of New York’s dairy processing boom. More than $2.4 billion is being invested across the state in new and expanded plants focused on yogurt, cheese, ultrafiltered milk, and other value-added products.
This includes major projects from well-known companies like Chobani, Fairlife, and Great Lakes Cheese. Combined, these facilities will significantly increase milk processing capacity and bring thousands of new jobs to rural regions. For farmers, it means stronger, more stable demand for local milk and an industry that is shifting toward higher-value products rather than relying solely on commodity markets.
This surge in investment positions New York as a national leader in dairy innovation and reinforces the importance of keeping milk production local, sustainable, and resilient.
New York Dairy’s Next Chapter
The wins of 2025 share a common theme: progress. New York continues to invest in modern processing capacity, support on-farm innovation, and champion sustainability, all while reinforcing the relationships between farmers, processors, and local communities. As these projects come to life over the next few years, they’ll shape a stronger, more forward-thinking dairy industry for the state.
One thing remains unchanged: New York dairy farmers show up every day with the same dedication and care they’ve always had. With statewide support and major industry investment behind them, the future of New York dairy looks brighter than ever.