Chobani's $1.2B Pennsylvania dairy plant

Chobani is investing $1.2 billion over five years to convert a former Keurig Dr Pepper production plant in Allentown, Pennsylvania, into a major dairy processing facility. The company announced the plan on September 1, as part of a broader $4 billion national manufacturing expansion.

The 1.5 million square foot plant is slated to open in 2027. It will house 10 production lines and is expected to generate 900 jobs. The facility will source three billion pounds of milk from Pennsylvania's dairy farms to produce Chobani's high protein milk.

Financial and ownership shift

As part of the transaction, Chobani is buying back Keurig Dr Pepper's $800 million equity stake in its business. The total deal, including the $125 million facility purchase, amounts to $925 million, according to KDP. This move ends a partnership that began in 2023 to support Chobani's La Colombe brand and leveraged KDP's direct store delivery network. Chobani will now have full ownership of the Allentown site.

The Pennsylvania Sites Initiative is investing an additional $50 million in public infrastructure to support the project. This funding will address wastewater, water, and energy challenges at the site.

Impact on Pennsylvania agriculture

Pennsylvania Governor Josh Shapiro called the investment the largest single investment in Pennsylvania agricultural history. He stated the facility will increase demand for the state's milk by 30%, sourcing from several of Pennsylvania's 4,300 dairy farms.

Chobani's expansion strategy includes several other key projects across the United States.

Founder's vision and regenerative partnerships

Founder Hamdi Ulukaya emphasized his commitment to preserving American agricultural communities. He said the tradition of family farming in upstate New York and investing in Pennsylvania is something that we need to preserve. Ulukaya, who grew up herding sheep on a family farm in rural Türkiye, added that the connection between land, farmers, and food carries the humanity with it. We can never lose that.

The company's agricultural partnerships extend into regenerative farming initiatives. These include work with Cornell's Nutrient Management Spear Program, which quantitatively tracks practices that reduce greenhouse gas emissions and improve biodiversity. Chobani also partners with the University of Idaho's Center for Agriculture, Food and Environment, a research dairy farm studying soil health, nutrient management and water contamination solutions.