Chobani's leaders made it clear during a recent meeting: They want all Pennsylvania milk for their brand-new plant in Allentown.
And they need 30% more milk from the state's dairy farmers.
So, where will that additional milk come from? Convincing dairy farmers that new investments in their facilities will pay off.
It won't be an easy sell for some.
With shrinking margins, the high cost of doing business and struggles with getting the next generation to farm, it's no surprise Pennsylvania's dairy industry has been on a steady decline for years. There are fewer dairy farms than there were 10 years ago, and cow numbers have also declined.
Many dairy farmers have gone out of business; some have switched to crops or now raise other livestock.
Others now process their own milk. Lancaster County, Pennsylvania’s dairy powerhouse, is dotted with dairies that process and sell their milk directly to the public. They set their own price and go directly to the public without having to worry if their milk check will pay the bills.
It's a strategy that has insulated them from the very margin pressures Chobani's new deal is meant to ease, and a reminder that not every farmer will see the Chobani opportunity the same way.
For the ones that are left, many dairy leaders I have talked to agree on one thing: Many have fallen behind in investing in modern facilities and nutrition programs.
Data reflects that.
The most recent USDA Milk Production Report showed the state's per-cow milk production in September was 1,720 pounds, the fourth-lowest of the 24 dairy-producing states tracked by the report. Michigan, by comparison, has fewer dairy farms than Pennsylvania and 15,000 more cows, but its cows produce 33% more milk, 2,290 pounds, the highest in the nation.
Adam Lock, an animal science professor at Michigan State University, said farmers there excel at feeding their cows the right nutrients, keeping cows in the right environments, and they put a premium on cow comfort.
Pennsylvania farmers are more than capable of doing the same thing, but it's been years since a big dairy processor such as Chobani invested here. Maybe this is what's needed to give farmers the boost they need to make investments, and here's how they can position themselves to do it:
Dairy Modernization Grant Program from the Northeast Dairy Business Innovation Center. It just opened, and applications are due Dec. 17. The program has $1 million in funding that will support projects that modernize outdated dairy systems, improve farm viability, increase animal health and comfort, and improve milk quality.
Grants range from $15,000 to $100,000 with a 25% in-kind or cash match required. Projects must show a systems-level approach to improvements. The application has two stages: a mini application due Dec. 17, followed by a full application this winter for approved applicants. The request for preapplications is available on the Dairy Farm Improvement and Modernization site.
Center for Dairy Excellence. The center also has several grants available now, on a first-come, first-served basis:
Dairy Decisions Consultants Grant. Up to $5,000 is available for one-on-one professional consulting, including a "whole farm" review with recommendations for moving forward in key business areas.
Dairy Transition Teams. Up to $4,000 is available to help cover paid team members, discovery-related costs and legal expenses for business transitions such as succession or changes in business structure.
Dairy Transformation Teams. Up to $4,000 is available to establish a team to help plan a major business transformation or additional enterprise within the dairy operation.
In a letter to the editor in Lancaster Farming, Jayne Sebright, executive director of the Center for Dairy Excellence, wrote that it will take the collective energy of dairy leaders and farmers to meet the opportunity Chobani affords.
I agree. But at the end of the day, investments take money, and the returns on dairy — at least in Pennsylvania — have had a dismal history.
Success here won't just mean farmers lining up to provide Chobani milk. It will mean farmers willing to upgrade facilities with an expectation that the price they get is sustainable enough to make those investments worth it. Without both, this moment will be another missed opportunity rather than lasting change.