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Ohio’s Agribusiness is the Competitive Advantage Dairy Processors Need to Grow

Published: Fri Jan 03 2025

Industry leaders like Dannon, Land O'Lakes, Daisy, Prairie Farms, Smith Dairy Products, and Kroger, have found Ohio’s agribusiness environment favorable for growth and expansion. The unique blend of resources, strategic advantages, and opportunities for sustainable growth make Ohio an ideal location for dairy processors.

High-Quality Supply

Ample milk production means dairy processors have room to grow and expand in Ohio. The state’s nearly 1,400 dairy farms produce an impressive 653 million gallons of milk annually, providing Ohio processors with a reliable, high-quality supply of raw milk.

"The size and scale of our dairy farmers is really unique all across Ohio," said Scott Higgins, CEO of the Ohio Dairy Producers Association. "Our dairy farmers are excellent at producing milk and meeting the high-quality demand that our processing community needs to deliver the most wholesome product and remain a vibrant part of Ohio’s industry."

The dairy industry is a vital part of Ohio’s agribusiness and growing economy. In fact, Ohio’s dairy sector generates $30.62 billion in economic impact annually, supporting 133,200 jobs. Ohio provides a skilled and knowledgeable workforce for dairy processors and producers.

Strategic Location and Market Access

Ohio’s central location in the Midwest offers a logistical advantage few states can match. Situated within a day’s drive of 60% of the U.S. and Canadian population, Ohio provides dairy processors with easy access to major consumer markets. This proximity reduces transportation costs and ensures timely delivery of fresh products, a critical factor in the highly competitive dairy industry.

“Kroger has several manufacturing and distribution facilities throughout Ohio because of our [the state’s] infrastructure and location," said Mark Bruce, Corporate Affairs Manager at Kroger. "Ohio is in the heart of it all—we’re in the middle of so many metropolitan areas, farms, and consumers."

The strategic location and proximity to customers provide a competitive advantage for Ohio-based processing locations. These benefits are critical factors for dairy industry leaders in search of the next site for business expansion.

“Here in Ohio, ag is a leading industry. We wanted to get closer to processing and bigger population centers, and Ohio offered both of those,” said Brock Peters, General Manager, MVP Dairy.

A Supportive Ecosystem

Ohio is home to a skilled and diverse workforce with expertise in manufacturing and food processing. The state’s colleges and universities play a vital role by offering programs in food science, agriculture, and business to ensure a continuous pipeline of talent. These institutions also provide cutting-edge research and development support, giving companies a competitive edge in creating innovative dairy products.

“We’re really lucky in terms of dairy support,” said Peters. “Labor availability, feed availability, and access to new products and technologies—there’s just a ton in Ohio’s dairy industry.”

JobsOhio, the state’s private economic development corporation, plays an important role in fostering this environment of growth and innovation, helping companies gain access to the resources and support needed to expand and evolve. “JobsOhio is all about helping to grow the industries that have a strong foothold here in Ohio," said Bruce. "Their support allows us to change our business model, improve technology, and meet Ohioans where they are."

Opportunities to Grow in Ohio

Ohio’s commitment to sustaining growth and innovation in the dairy industry is clear: the state has the available milk supply growing processors need, a robust infrastructure and convenient location to make accessing customers easier and more affordable, and a collaborative business environment that welcomes growth and innovation.

“One of the things we absolutely need to do is assure our processors that we want them to stay in Ohio,” said Higgins. “We want to make sure they have the assets and capability to expand their facilities so they can grow and meet consumer demand, from innovative new products to maintaining the integrity of our processing community.”

Higgins emphasizes the opportunity for dairy processors in Ohio. "If I’m a processor and I look at the capabilities of Ohio’s dairy industry, this is where they should be paying attention. Ohio is a great place to live, work, and play. So, we welcome you. Come to the state of Ohio, and let’s do business."

Let’s Grow Together