Chinese company, Dairy Farmers plan Kansas plant

Dairy Cows (AP Photo/Carolyn Kaster)

KANSAS CITY, Mo. (AP) – A Chinese company and the Dairy Farmers of America say they are planning a $100 million plant somewhere in Kansas but details are sketchy.

The Dairy Farmers of America, a cooperative owned by 13,000 dairy farmers based, is based in Kansas City. It is working with the Inner Mongolia Yili Industrial Group. The two groups formed a partnership two years ago.

The plant’s location was not disclosed but it is likely to be in western Kansas, where most of the state’s milk production occurs.

The plant would produce up to 88,000 tons of milk powder a year.

Rick Smith, president and CEO of Dairy Farmers of America, said Yili is a fitting partner because it is a leading Chinese dairy processor.

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