NORWICH – Other industries have come and gone, but dairy has been churning Chenango County for more than a century. Now, thanks to the successful new cog in the wheel called Chobani Greek yogurt, future growth appears all but certain.
In celebration of Dairy Month and agriculture in general, Development Chenango (the county’s economic development arm) unveiled a loan program Friday that was made possible by the number one Greek yogurt manufacturer. Farmers may buy cows, new equipment, and even acreage with up to $250,000 from a dairy-specific revolving loan fund.
The money was originally loaned to the New Berlin-based business six years ago as part of a grant from the New York State Office of Community Renewal. Hamdi Ulukaya, president, CEO, & founder of Chobani, made the special announcement at a luncheon at the Canasawacta County Club, saying it’s time to “loan back” to keep the dairy industry expanding.
“Because we used it first, it’s got a good feeling for you,” the Turkish immigrant told a large group of agribusiness enthusiasts and their corporate, government and community supporters who came to hear the Chobani success story.
Ulukaya is convinced that Central New York has the best milk in the country and said he takes great pride in producing a product that’s not only healthy, but tastes good. The yogurt plant uses over three million pounds of milk a day – 85 percent of which comes from New York dairy farmers – and ships over 1.7 million cases each week across the country.
“Everything starts with dairy. We have a responsibility to make sure that sustainable farming is possible so that children will follow their fathers and grandfathers’ legacy as I have. You have to absolutely love it to do it, because it’s hard work. I know, I’ve done it. Together, we can make farming hip and cool again,” he said.
In brief speeches prior to Ulukaya’s key note address, Cornell Cooperative Extention Director Ken Smith said dairy farming is “a massive part of the region’s economic health” representing an $11 billion industry in the state and more the $100 million annually to Chenango County. “That’s before you even consider the fabulous things that have happened because of Chobani,” he said.
Several inquiries have come into Chenango Development about the new loan program already, said Chenango County Economic Development Director Jennifer Tavares.
“We are very thankful to the investment that Chobani has made here, and we are thankful and excited to watch new, young farmers enter the industry and existing farms put the funds to work. ... We don’t have all of the answers to the problems facing dairy, but we want to do everything we can to help farmers maximize their potential,” she said.
Ulukaya said Development Chenango had been with him from the beginning, helping to secure the revolving loan when no banks were lending and introducing him to the power players in Albany.
He began with four employees and a 90-year-old former Kraft plant on the border of New Berlin and South Edmeston. Upon touring the closing facility, he said the employees who were working diligently to shut down operations had an impressive work ethic. He thought if they could put that much professionalism into the act of closing, imagine how hard they might work to start a business. He ultimately hired four of them: the maintenance manager, the production manager, the machine operator and a clerk.
The first action was to paint the building, a decision his small staff found unusual.
“They thought I might have more important things to do first, but I was uncertain where to begin. You have to start somewhere, and then you think of other things to do. Taking action is the best way to start,” he said.
The original group of four will accompany Ulukaya on a trip to the Olympics in London next month to celebrate Chobani’s success and to represent the corporation’s sponsorship. A televised advertisement for Chobani featuring Chenango County dairy farmers and company employees will appear nationwide during the London 2012 Olympic and Paralympic Games.
A lot of hard work since 2006 brought the company from zero sales to $1 billion and more than 1,200 employees today. Chobani could be the fastest independent start-up in history ... “at least one that actually made something,” the CEO said, to much applause.
“This is a business story, but the people who work here make a good product. They are the heart beat, it’s about the spirit, and it’s in this community. It’s very, very alive,” he said. This commitment to community is exemplified in Ulukaya’s decision to include only local people in his company’s first commercial.
Ulukaya professed that there was nothing special about him except for his spirit. He encouraged farmers to see it in themselves, too. The many consumers who write to tell him how Chobani has changed their lives by making them healthier are the true heroes, he said.
“Truly, it is affecting a lot of people, this spirit. ... We share this success and make them understand it's their success, too. And I know that they feel it."
In parting, Ulukaya said there’s much work to be done within the dairy industry, in particular, securing legal protection for use of the word “milk.” Soy, coconut and rice drinks are not milk, he said.
“I don’t know what it is. Why don’t you call it something?” he asked, again receiving a resounding applause.


Chobani Inc. President Hamdi Ulukaya posed with Chenango County’s Dairy Princess Katlin Smith following a Commerce Chenango luncheon Friday at the Cansawacta Country Club in Norwich. Ulukaya delivered an inspirational speech about his $1 billion start-up company and helped announced a new fund aimed at supporting the county’s dairy farming industry.