The number is huge: $11 billion. That is how much US dairy processors are spending on new and expanded manufacturing capacity across 19 states, per the International Dairy Foods Association (IDFA), Dairy Foods reports.

Per IDFA, the spending is driven by:

  • US milk production is expected to grow by 15 billion pounds (about 6.8 billion kg) by 2030 to meet demand — enough to fill more than 1.7 billion gallon jugs;
  • US dairy exports are also growing, as buyers in South and Central America, Southeast Asia and the Middle East spend rising incomes on safe, reliable and affordable US dairy nutrition;
  • demand for high-protein, wholesome foods has surged sales of yogurt, shakes and smoothies, cottage cheese, milk products and whey protein — cottage cheese sales alone up about 20% in the year to June 2025 (Circana);
  • per-capita US dairy consumption hit a record 661 pounds (about 299.8 kg) in 2023; per-capita cheese consumption has doubled in 50 years, and fluid-milk consumption is growing for the first time since 2009.

The top five states by investment are New York ($2.8 billion), Texas ($1.5 billion), Wisconsin ($1.1 billion), Idaho ($720 million) and Iowa ($701 million). By product category: cheese ($3.2 billion), milk/cream ($2.9 billion), yogurt and cultured dairy ($2.8 billion), butter and powders ($1.6 billion) and ice cream ($530 million). Processors are not building «yesterday’s plants» — automation and artificial intelligence (AI) are often a major component. Dairy Foods examined four North American processors.

Wells Enterprises’ expansion underlies significant growth

Wells Enterprises is expanding its Dunkirk, N.Y. ice cream plant, underscoring its long-term commitment and leadership in ice cream; the plant is central to the national manufacturing network for its Blue Bunny, Halo Top, Bomb Pop and Blue Ribbon Classics brands.

«Our expanded Dunkirk facility is specifically designed to address the needs of today and tomorrow by boosting our production output and enabling future innovations. In fact, we are implementing state-of-the-art functionality, including an integrated chocolate manufacturing facility, while also reducing energy usage and designing to ensure food safety and quality», Brad Galles, chief manufacturing and engineering officer at Wells Enterprises, tells Dairy Foods.

Wells brought chocolate production in-house — «a new vertical integration opportunity … producing premium chocolate ingredients onsite for use in our ice cream and novelty products», Galles says. New office and employee areas feature a geothermal heating-and-cooling system, and the plant has an advanced energy-management system to «closely monitor our overall energy consumption and identify opportunities to reduce energy usage». Production lines are isolated to prevent allergen cross-contamination, with dedicated HVAC systems maintaining optimal temperature and humidity. 

«Through these innovations, we are not only modernizing, but we are investing in the latest technology … to strengthen the facility’s ability to support our national manufacturing network», he adds.

New Gelatys gelato facility

In late May, Gelatys opened an $8 million, 30,000-plus-square-foot (about 2,800 sq m) facility in Fort Myers, Fla., a key step toward becoming a national consumer packaged goods (CPG) brand. Built on a 1.5-acre site, it features next-generation machinery capable of producing in one hour what once took a full day, scaling output for the national rollout of Mini Gems — Gelatys’ premium, portion-controlled gelato mini pops — and the next generation of premium Italian-style frozen novelties.

«Traditionally, authentic gelato has been very difficult to scale while maintaining the same experience consumers expect from a handcrafted product. With this technology, Gelatys has transformed itself into the leading gelato novelties company in the United States, combining authentic gelato craftsmanship with large-scale manufacturing capabilities that very few companies in the industry can achieve», founder and CEO Adolfo Heller Cohen tells Dairy Foods.

The plant combines next-generation freezing, molding and coating technologies with highly customized processes to preserve the dense, creamy texture that differentiates gelato from traditional ice cream. Cohen says the design focused on four areas — product-quality preservation, scalability, operational efficiency and flexibility for innovation — protecting «texture, overrun control, ingredient integrity, and coating precision so the final product still feels artisanal despite large-scale production». 

Advanced automation and process controls «significantly improve efficiency, reduce waste and increase production capacity», while scalable systems allow the company to «rapidly develop and commercialize new premium novelty concepts» for both its own brand and manufacturing partners. The facility is designed to adapt quickly to «new formats, flavors, inclusions, better-for-you products, and co-manufacturing opportunities».

Bel Group breaks ground in South Dakota

Bel Group broke ground on a $200 million expansion of its Babybel plant in Brookings, S.D., doubling annual capacity from 10,000 to 20,000 tons. The investment will create around 150 jobs and double milk sourcing from American farms, primarily in South Dakota and neighboring states — one of Bel’s largest US manufacturing investments, supporting demand for portion-sized dairy snacks.

Bel has manufactured in the US for more than 50 years; it is now its largest market, driving 33% of global sales with more than $1.2 billion in annual retail sales, having doubled between 2018 and 2024. Bel now aims to double its US business again, making the US the driver of more than half of the group’s projected growth.

«The United States is a strategic market and a key engine of growth for Bel. Expanding our Brookings facility reflects our commitment to investing locally, strengthening domestic production, and supporting sustained demand for our brands. The decision to double capacity of this facility positions us for enhanced long-term growth in the U.S.», says Cécile Béliot, CEO of Bel Group.

As capacity doubles, the plant’s daily milk intake will rise significantly, deepening partnerships with American farmers. Per a company statement to Dairy Foods, its focus is on «automation with an emphasis on safety, ergonomics and people’s well-being, paired with improved efficiency and productivity».

Danone makes big bet on Canada

Danone Canada announced plans to expand its flagship Boucherville, Québec plant — the largest investment in the company’s history — to increase yogurt capacity and modernize energy use. The exact figure was not disclosed, but it comes on top of the $9 million announced in June 2025 for PET (polyethylene terephthalate) individual yogurt cups.

«Canadians are embracing healthier choices, and the rising popularity of yogurt, especially high-protein varieties, speaks volumes. Nutritious and accessible, yogurt has become a staple for families. This significant investment underscores our commitment to supporting local production and delivering on what we do best at Danone: bringing health through food», says Frederic Guichard, president, Danone Canada.

New energy-recovery equipment strengthens the sustainability commitment; the project is part of ÉcoPerformance, a Government of Québec program stemming from the Plan for a Green Economy 2030. Since 2022, the Boucherville plant has been among Danone’s first in North America to divert at least 99% of non-hazardous waste from landfill and send no hazardous waste to landfill. 

«Through growth, innovation and sustainability of our operations, we are proud to reaffirm our position as a major food producer in Canada», notes Géraldine Moret, Danone Canada’s VP of operations.

The project supports brands including Oikos, Activia and Danone.

Source: Dairy Foods