Governor Shapiro, Secretary Redding Celebrate MDVA’s First Dairy Processing Facility in Pennsylvania, Expanding the Commonwealth’s Dairy Industry and Creating Economic Opportunity

The MDVA has purchased the HP Hood milk manufacturing facility in Philadelphia and will retain 178 existing jobs while increasing annual milk production at the plant thanks in part to the Shapiro Administration’s investment.

Governor Shapiro knows that PA’s economic success is dependent on our farmlands – and his 2024-25 budget would invest $10.3 million in ag innovation to create economic opportunity and help attract new businesses.

Philadelphia, PA – Today, Governor Josh Shapiro and Agriculture Secretary Russell Redding announced that Maryland & Virginia Milk Producers Cooperative Association (MDVA) has purchased the HP Hood milk manufacturing plant in the City of Philadelphia – an  expansion project that will retain 178 existing jobs, including 137 union jobs. MDVA Milk, producers of Maola Local Dairies products, will invest additional monies into the plant to transform the production capacity from 10 million to 25 million gallons annually over a two-year period.

As part of the effort to attract MDVA to Pennsylvania, Governor Shapiro directly engaged MDVA CEO Jay Bryant, and the Commonwealth prepared an aggressive incentive package totaling $10 million in grants and loans.

Under Governor Shapiro’s leadership, Pennsylvania is successfully competing with other states and countries to attract and retain business like MDVA. Since January 2023, Governor Shapiro has announced more than $1.2 billion in new private sector investment in Pennsylvania as a direct result of his Administration’s work.

“This is an exciting day for Pennsylvania ag – not just for the 720 Pennsylvania dairy farmers who are members of your co-op, but for all 5,000 dairy farmers in our Commonwealth who have been waiting for more processing capacity to come online,” said Governor Josh Shapiro. “The Commonwealth’s economic success is dependent on our rural communities and our farmlands – and that’s why our new Economic Development Strategy and my budget put agriculture and our dairy industry front and center. By focusing on agriculture as a key pillar of opportunity and by investing more in economic development, we will continue Pennsylvania’s legacy as a national leader in agriculture innovation, attract new businesses to our Commonwealth, and support our farmers.”

Governor Shapiro recently launched the Commonwealth’s first Economic Development Strategy in nearly two decades, building on the Shapiro Administration’s work to make Pennsylvania a national leader in innovation and economic development and to create economic opportunity for all Pennsylvanians.

Agriculture supports over 600,000 jobs and contributes $132 billion annually to Pennsylvania’s economy. The dairy industry generates $11.2 billion in economic impact and includes 52,000 jobs in the Commonwealth. Agriculture is one of five key industry sectors in the Governor’s Economic Development Strategy, and today’s announcement is another example of how the Shapiro Administration is ensuring that agriculture is front and center in the conversation on how to create economic opportunity in Pennsylvania.

“Pennsylvania’s dairy industry is not only a keystone to our heritage, but also a key to our future,” said Agriculture Secretary Redding. “This investment and partnership with MDVA is a testament to the growth and potential for this industry, which starts on our nearly 5,000 dairy farms, runs through our innovative and dedicated processors, and nourishes consumers around the world.”

MDVA received a $10 million funding proposal from the Department of Community and Economic Development (DCED) for its expansion that includes a $7.25 million Pennsylvania Industrial Development Authority (PIDA) loan, $2.5 million in Redevelopment Assistance Capital Program (RACP) funding, and a $300,000 workforce development grant to train workers.

“Pennsylvania is a great place to do business, and we are doubling down on our efforts to attract more companies like MDVA to the Commonwealth,” said DCED Secretary Rick Siger. “We will continue to make bold investments in strong national and international companies, sending a clear signal to the world that Pennsylvania is open for business.”

Founded in 1930, MDVA is a farmer-owned dairy cooperative that consists of over 900 family-owned dairy farms. Currently, 80 percent of its member owners are located in Pennsylvania. MDVA collects and markets its member farms’ milk to outside processors or for use at its own processing plants.

“With 80% of our family-owned farms existing in Pennsylvania, it made sense that we would seek an opportunity to process our milk in the state as well,” said Maryland & Virginia Milk Producers Cooperative Association CEO Jay Bryant. “The acquisition of our new ultra-pasteurized plant in Philadelphia represents more than just a business transaction – it is a testament to the power of partnership, including with leaders like Governor Shapiro and Secretary Redding, to advance the agriculture economy of the Commonwealth of Pennsylvania.”

By supporting Pennsylvania agriculture on farmland, in forests, and within our communities across our state, Governor Shapiro’s proposed budget and new economic development strategy continue Pennsylvania’s national legacy as an agriculture leader. To maintain this legacy, the Governor’s budget proposes:

• $10.3 million in agriculture innovation to help support and attract new agricultural businesses, including energy and conservation endeavors, and to continue to build the future of American agriculture right here in Pennsylvania.

• $5.6 million to reform the Dairy Margin Coverage Protections that protect dairy farmers from harmful price fluctuations.

• $5 million for a new state laboratory in western Pennsylvania that will provide much needed testing capacity, helping with rapid diagnosis and mitigation of future highly pathogenic avian influenza (HPAI) outbreaks across the state.

• $655,000 to fund a groundbreaking new state program for agricultural seed certification and trade assistance that will grow Pennsylvania’s role as a national and international agricultural leader.

“I’m thrilled to see Governor Shapiro’s dedication to fostering economic growth in our state,” said Senator Jimmy Dillon. “The $10 million investment in MDVA’s expansion project not only retains 178 union jobs in our area but also propels Pennsylvania’s dairy industry forward. I’m proud to stand behind initiatives that prioritize the growth and vitality of our local industries.”

The Governor’s 2024-25 budget also proposes significant investments directly tied back to his economic development strategy and issues a strong call to action for partners across all sectors to join in with their support. His budget proposes more than $600 million in total new and expanded economic development investments, including:

• $500 million in PA Sites funding to bring more commercial and industrial sites online;

• $25 million for the newly proposed Main Street Matters program to support small businesses and commercial corridors;

• $20 million to support large scale innovation.

“I am grateful for the investment to Pennsylvania’s dairy industry, and for MDVA’s commitment to invest in the 170^th District with their acquisition of the HP Hood milk manufacturing facility,” said Representative Martina White. “These resources not only support our hardworking dairy farmers across the Commonwealth, but also help secure the future of a facility that employs many of our friends and neighbors in northeast Philadelphia.”

You can read Pennsylvania’s first economic development strategy in 20 years here. For more information on how the Governor’s proposed budget will create opportunity for all Pennsylvanians and continue Pennsylvania’s national legacy as an agriculture leader, visit shapirobudget.pa.gov.

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