PA dairy plant expands with $10M in state aid

By Blake Jackson

Pennsylvania Governor Josh Shapiro visited a dairy processor in Philadelphia to celebrate its expansion with state funding. Maryland & Virginia Milk Producers Cooperative Association, which gets most of its milk from Pennsylvania farms, bought the former HP Hood plant. The state provided $10 million in grants and loans to keep the plant open, save 178 jobs, and double its production capacity by 2026.

This investment supports Pennsylvania's strategy to grow its agricultural sector in both rural and urban areas. The new plant fills a gap in the co-op's network and reduces the need for long-distance transport of perishable raw milk. This benefits both processors and farmers by creating more opportunities to sell and market dairy products.

The Maola Local Dairies plant uses ultra-pasteurization to produce milk with a longer shelf life. The facility, built in 1980, is strategically located near major highways.

Governor Shapiro and Agriculture Secretary Redding see this expansion as part of a larger plan to strengthen Pennsylvania's dairy industry. The state has previously supported the construction of an infant formula plant and smaller dairy processors. Pennsylvania also lost out on a major dairy project to New York due to lack of a suitable construction-ready site. To address this, Governor Shapiro proposed a bond to develop such sites for manufacturers, including dairy processors.

The Maola plant's expansion is funded through a combination of loan, grant, and workforce development programs offered by the Pennsylvania Department of Community and Economic Development. This project is expected to benefit both the dairy industry and the local economy.

Photo Credit: gettyimages-vm