Darigold, a key player in the nation’s dairy industry, has marked a significant milestone by officially inaugurating its cutting-edge facility in Pasco, Wash. This new site reflects a monumental investment of over $1 billion in Washington’s dairy sector and is set to revolutionize the region’s dairy production capabilities.
Darigold’s new plant is designed to process an astounding 8 million pounds of milk daily from over 100 regional farms. The facility will produce high-quality butter and powdered milk products for both U.S. and international markets, reaching customers in more than 30 countries. Beyond its direct production capabilities, the plant is expected to create nearly 200 jobs on-site and support up to 1,000 jobs in the broader community through transportation, warehousing and farm work.
Allan Huttema, president and CEO of Darigold, emphasized the sustained growth of dairy demand globally.
“Our new Pasco facility solidifies the Northwest as a global dairy leader and reflects our farmer-owners’ long-term commitment to good stewardship, high-quality production and maintaining dairy farming as a way of life,” he says.
Supporting U.S. Dairy Growth
Approved by Darigold’s farmer-owners in 2021, the Pasco plant is a strategic move to expand and modernize the company’s production capabilities. The location was selected for its proximity to numerous NDA member farms, a robust local workforce, and excellent transportation infrastructure. Since construction began in 2022, the plant has started receiving and processing milk. The full suite of production equipment is expected to come online soon — with powdered milk and butter production starting by August and a second milk dryer by the year’s end.
Despite these developments, Darigold recently communicated a reduction in payments to its farmers — $4 less per hundredweight — lasting to year-end. This reduction partially funds the Pasco plant, with the remainder addressing operating losses.
Local Impact and Challenges
Darigold boasts about 250 member farms and 11 plants across Washington, Oregon, Idaho and Montana. Significantly, 40% of Darigold products are exported internationally.
Fourth-generation dairy farmer Jason Sheehan, operating J & K Dairy near the Tri-Cities, shares a hopeful outlook amidst financial strain.
“It’s going to be a rough road for the next year or so,” Sheehan states, highlighting the challenges of reduced milk prices and deductions that sting even more due to increased cow values.
Sheehan notes the difficulty in maintaining cash flow under current conditions, an issue mirrored across Washington’s dairy industry.
“Especially when you have an uncertain future,” he adds.
Sustainability at the Core
Despite these hurdles, sustainability remains a cornerstone of the new facility, aligning with U.S. Dairy’s 2050 stewardship goals. Innovations include:
- Low-emission burner technology in milk dryers to minimize nitrogen oxide emissions.
- A partnership with the City of Pasco to expand its Process Water Reuse Facility (PWRF), which includes an anaerobic digester for responsible wastewater treatment and reuse.
- A strategic location within the Port of Pasco, reducing transportation emissions through logistical efficiencies.
Jean Ryckman, president of the Port of Pasco Commission, remarked on the project’s impact, noting, “This project creates an impressive number of new jobs and brings new opportunities for the citizens of Pasco and the surrounding area.”
Investing in the Future of Dairy
The Pasco project reflects Darigold’s commitment to sustainable dairy farming and industry innovation. Tim Kuenzi, chairman of Darigold’s board of directors, highlighted the importance of being good stewards of the land.
“This new facility allows us to meet growing global demand for dairy while ensuring we manage those resources responsibly,” he says.
Developed with the Port of Pasco and designed by E.A. Bonelli & Associates, the plant is constructed by Miron Construction. Jean Ryckman appreciated the collaborative effort, thanking every public agency and local utility for their support in bringing the project to life.
With a focus on innovation, community impact,and environmental stewardship, this project marks a significant milestone not just for Washington’s dairy sector, but for the global dairy industry as a whole. As Darigold navigates through present challenges, its dedication to sustainable and ethical growth remains unwavering.
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