COLUMBUS – Last week was an exciting one for New York’s number one dairy manufacturer. On Tuesday, Chobani Greek-style yogurt maker Agro Farma was granted $18 million in New Market Tax Credits to enable them to expand their existing production facility in the Town of Columbus. Two days later, they officially went global with the acquisition of Beads Foods Pty Ltd., an Australian natural dairy products manufacturer.
“This acquisition marks a major milestone for Agro Farma as we expand our global reach into key international markets. And we couldn’t have picked a better partner to start with,” Agro Farma’s founder, Hamdi Ulukaya, said in a press statement issued Thursday.
“Not only are Bead Foods’ products world class, but so are their people. We look forward to learning from them, sharing our knowledge and growing together.”
Founded in 2001, Bead Foods produces an innovative line of yogurts and specialty cream products under the Gippsland Dairy brand, including the popular Twist label. The company’s production facility in Dandenong, Victoria serves markets throughout Australia and in South East Asia.
“Our goal is to grow the yogurt category in Australia,” Ulukaya said. “We’ve fallen in love with the country’s beauty and residents, who’ve treated us with great hospitality, and we’re excited to bring them more great options to choose from.”
The terms of the deal, which brought Beads Food into the Agro Farma fold as a wholly-owned subsidiary, have not been disclosed.
News of the acquisition has overshadowed an announcement made earlier in the week by New York’s economic development agency, Empire State Development, granting Agro Farma $18 million in federal New Market Tax Credits.
A press release issued by ESD stated that Agro Farma approached the state for financial assistance earlier this year to support “a major investment in machinery and equipment needed to meet consumer demand.”
Details of the proposed project are scarce, but according to the ESD, Agro Farma intends to invest $90 million to expand capacity at the company’s South Edmeston facility in a move anticipated to retain 386 jobs and create as many as 450 new full-time positions.
Even with the tax credits, however, the project may not happen.
“The allocation we received from the ESNMC is a huge step towards helping us be able to finalize our plans to expand our South Edmeston site; however, we have yet to confirm that we’ll move forward with this project,” said Agro Farma’s director of communications, Nicki Briggs.
While Briggs did not comment on the specific nature of the project, she did confirm that one of the impediments they face is the availability of Chobani’s main ingredient.
“Milk availability is our largest issue,” She said. “But regardless we’re investigating whether this expansion makes sense from a financial and manufacturing standpoint. We’re dedicated to increasing our production capacity for our Chobani brand and are currently exploring the best options for doing so.”