Agro Farma moves ahead with $22 million expansion in South Edmeston
COLUMBUS – The Chenango County company which has taken supermarkets by storm with its Chobani Greek-style yogurt is moving forward with plans to expand its original South Edmeston site.
According to Agro Farma Vice President of Operations Keven Bucklin, the project involves construction of an approximately 100,000 square foot refrigerated warehouse and renovations to the existing plant.
“We’re currently leasing a building in Albany (for refrigerated storage),” Bucklin said. The addition of the warehouse on site will not only eliminate that need, he explained, but will also allow the company to increase production and decrease traffic congestion around the plant.
The company has already acquired a 14-acre parcel across the road from their existing facility, and is waiting to close on a second, roughly half acre parcel where Rick’s Tavern is currently located. Currently, they are conducting archeological and geological surveys, as well as the State Environmental Quality Review (SEQR) required by New York State.
“The plan is to start actually digging in July,” Bucklin reported. The majority of the building should be completed and online by the end of the year, he added, with all work finished by the end of the first quarter of 2011.
Renovations have already begun in the existing facility, including the construction of drive-thru receiving bays which will eliminate the need for milk haulers to back across County Road 25 thus helping reduce congestion on the narrow roadway. According to Bucklin, the first of these bays has already been completed and a second should be on-line by mid-July. A third bay will also be added.
Bucklin said traffic congestion will be relieved even further by the warehouse itself.
“90 percent of our volume will be loaded across the street,” he said. The yogurt itself will be transported to the refrigerated warehouse via an enclosed, elevated conveyor system which will stretch across County Road 25 to bridge the two buildings. The structure will be approximately 35 feet above the road surface, he explained, providing more than adequate clearance for vehicles traveling the county roadway.
“We’re working with all of the regulatory agencies,” he said.
The new warehouse structure will also enable Agro Farma to convert two refrigerated storage areas in the existing facility into packaging lines. According to Bucklin, this will make it possible to increase production capacity to “upwards of 1 million cases per week.” Currently, he said, the plant is currently churning out 500,000 cases per week - close to 100 percent of its current capacity.
Company officials has estimated the project will result in the creation of 20 additional full-time jobs over the next 5 years, in addition to the 165 currently employed in South Edmeston. They also anticipate the creation of 90 construction jobs in the short term.
While Agro Farma is picking up the full $22 million price tag for the construction project, they have sought a sales tax exemption from the Chenango County Industrial Development Agency for construction materials and equipment related to the project.
According to CCIDA Executive Director Maureen Carpenter, the purpose of the exemption is not only to encourage Agro Farma to grow its operation in Chenango County, but also to encourage them to purchase construction materials and equipment locally. Carpenter explained that the company only realizes the full 8 percent tax savings on goods purchased within Chenango County.
Following a public hearing on May 19 in the Town of Columbus, the CCIDA adopted a resolution approving Agro Farma’s requested sales tax exemption contingent on the project’s SEQR.
“Until that environmental review is completed, we will not actually enter into a contract with the company for the sales tax exemption,” Carpenter reported.
The yogurt manufacturer continues to work with the Department of Environmental Conservation to upgrade its wastewater treatment facility. According to Bucklin, Agro Farma will be installing a membrane bioreactor (MBR), which he described as a “large membrane filter that acts as a clarifier.”
Bucklin said the company also continues to seek financing from the state to move ahead with their plans for the Woods Corner facility previously occupied by Procter & Gamble.
“We still haven’t gotten any green lights there,” he said. Agro Farma closed on the 88-acre facility earlier this year.
According to Bucklin, the company is also looking to expand distribution of its popular Chobani-brand yogurt throughout North America.
“We continue to search for production facilities out West and in Canada as well,” he said.
According to Agro Farma Vice President of Operations Keven Bucklin, the project involves construction of an approximately 100,000 square foot refrigerated warehouse and renovations to the existing plant.
“We’re currently leasing a building in Albany (for refrigerated storage),” Bucklin said. The addition of the warehouse on site will not only eliminate that need, he explained, but will also allow the company to increase production and decrease traffic congestion around the plant.
The company has already acquired a 14-acre parcel across the road from their existing facility, and is waiting to close on a second, roughly half acre parcel where Rick’s Tavern is currently located. Currently, they are conducting archeological and geological surveys, as well as the State Environmental Quality Review (SEQR) required by New York State.
“The plan is to start actually digging in July,” Bucklin reported. The majority of the building should be completed and online by the end of the year, he added, with all work finished by the end of the first quarter of 2011.
Renovations have already begun in the existing facility, including the construction of drive-thru receiving bays which will eliminate the need for milk haulers to back across County Road 25 thus helping reduce congestion on the narrow roadway. According to Bucklin, the first of these bays has already been completed and a second should be on-line by mid-July. A third bay will also be added.
Bucklin said traffic congestion will be relieved even further by the warehouse itself.
“90 percent of our volume will be loaded across the street,” he said. The yogurt itself will be transported to the refrigerated warehouse via an enclosed, elevated conveyor system which will stretch across County Road 25 to bridge the two buildings. The structure will be approximately 35 feet above the road surface, he explained, providing more than adequate clearance for vehicles traveling the county roadway.
“We’re working with all of the regulatory agencies,” he said.
The new warehouse structure will also enable Agro Farma to convert two refrigerated storage areas in the existing facility into packaging lines. According to Bucklin, this will make it possible to increase production capacity to “upwards of 1 million cases per week.” Currently, he said, the plant is currently churning out 500,000 cases per week - close to 100 percent of its current capacity.
Company officials has estimated the project will result in the creation of 20 additional full-time jobs over the next 5 years, in addition to the 165 currently employed in South Edmeston. They also anticipate the creation of 90 construction jobs in the short term.
While Agro Farma is picking up the full $22 million price tag for the construction project, they have sought a sales tax exemption from the Chenango County Industrial Development Agency for construction materials and equipment related to the project.
According to CCIDA Executive Director Maureen Carpenter, the purpose of the exemption is not only to encourage Agro Farma to grow its operation in Chenango County, but also to encourage them to purchase construction materials and equipment locally. Carpenter explained that the company only realizes the full 8 percent tax savings on goods purchased within Chenango County.
Following a public hearing on May 19 in the Town of Columbus, the CCIDA adopted a resolution approving Agro Farma’s requested sales tax exemption contingent on the project’s SEQR.
“Until that environmental review is completed, we will not actually enter into a contract with the company for the sales tax exemption,” Carpenter reported.
The yogurt manufacturer continues to work with the Department of Environmental Conservation to upgrade its wastewater treatment facility. According to Bucklin, Agro Farma will be installing a membrane bioreactor (MBR), which he described as a “large membrane filter that acts as a clarifier.”
Bucklin said the company also continues to seek financing from the state to move ahead with their plans for the Woods Corner facility previously occupied by Procter & Gamble.
“We still haven’t gotten any green lights there,” he said. Agro Farma closed on the 88-acre facility earlier this year.
According to Bucklin, the company is also looking to expand distribution of its popular Chobani-brand yogurt throughout North America.
“We continue to search for production facilities out West and in Canada as well,” he said.
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