Initially, the plant will process about 1 million pounds of milk per day and produce fractionated dairy ingredients, which can be used as functional ingredients in a variety of dairy and food products.
In 2013, the company plans to expand the plant and by the end of that year, it will process a total 2.5 million pounds of milk per day, adding cheese and other dry milk ingredients to its production.
Kansas Dairy Ingredients, currently based in Missouri, also plans to relocate its business operation offices at Kansas City and Hugoton in Kansas.
Kansas is one of the leading dairy growth states in the US, with around 400 dairy farms, 12 dairy processing plants, and 68 milk and dairy distributors. According to the US Department of Agriculture (USDA), milk production in the state was 221 million lbs in January 2012.