Dive Brief:
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Hi-Tech Pharmaceuticals Inc. bought the former Dean Foods Fairmount Products facility, which was once a dairy processor serving the mid-Atlantic region, according to a news release. The Pennsylvania facility distributed milk and dairy products such as whey, cheese, ice cream mixes, yogurt and sour cream — raking in annual revenues of about $30 million.
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Hi-Tech Pharmaceuticals will use the plant to turn whey into “value-added” byproducts, benefiting local farmers and bolstering an economically struggling area. These byproducts and dairy ingredients can be used in a number of food, industrial, nutraceutical and agricultural applications, according to the company's statement.
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New high tech operations will allow for the production of significant amounts of cheese and other products — the daily output from 15,000 underemployed cows.
Dive Insight:
More and more plants once used for one kind of food production are being recycled to do something else. A lot of the big bucks — getting the property set up and the equipment in place — have been spent. Repurposing the place is a much smaller investment.
While technology has likely changed since a plant was shut down, much of the physical parts of the plant needed to produce similar products are already in place. Zoning issues also shouldn't pose much of a problem. When companies go before the local zoning board and say they're going to employ people and produce value-added products consumers want, that board's light is likely to turn from yellow to green pretty quickly.
Companies with dairy products processing plants know what they need in the way of facilities, access and low impact on the surrounding area. If they're recycling a plant formerly used for similar production practices, there's a good chance the community will welcome them with open arms. Jobs once lost will be back, and that's a blessing — one that will be especially welcome in longtime dairy communities as large scale dairies move away from manpower in favor of automation.