The Iowa dairy industry is planning to move forward with plans to build a new $2.2 billion dairy facility in Decatur, Iowa, as the Iowa Board of Agriculture approved a memorandum of understanding on Friday that would allow the company to move ahead with construction of a new dairy facility.
The deal was signed in November but was postponed for months because of uncertainty over a contract dispute between Dairy Palace and the Iowa State Department of Natural Resources.
In February, the agency said it would not renew a contract for the new facility until it had reviewed the Decatur contract.
“The Decatur Dairy facility will provide our farmers with a reliable and secure source of dairy products, and our industry will continue to thrive through the expansion and improvement of our facilities,” Iowa Dairy Chairman and CEO Michael Berenbaum said in a statement.
Dairy Palace is the first Iowa company to build its new facility.
“We’re excited to be a part of the Iowa dairy system,” Berenba said in the statement.
“As the world’s largest producer of dairy, Iowa has proven that it is an agricultural powerhouse and is ready to expand our dairy footprint in the coming years.”
Dairy Palace currently owns and operates five dairy farms in the state.
“Our goal is to bring new, innovative products to the marketplace and we have the resources and capabilities to make this happen,” Bereba said.
“Dairy Palace is an exciting and unique company and we look forward to partnering with Iowa farmers and our partners to further our success.”
Dairy Palaces Iowa Dairy Farm is scheduled to open in 2018 The Decatur project is one of a number of new Iowa dairy facilities being built or developed.
The first of those is in Cedar Rapids, Iowa.
Iowa Dairy Palace plans to open a new 100,000-square-foot facility in Cedar Falls, Iowa in 2018.
Iowa’s new contract for Iowa’s dairy industry will include the purchase of a 75,000 square-foot property in Decamp that the company owns, according to the Iowa Department of Agriculture.
Terry Branstad said in December that Iowa’s state and local governments were prepared to invest in new dairy facilities.
“If we’re going to make Iowa a better place to live, work, play, and visit, we have to look to the future,” Branstad wrote on Twitter.
“Today’s announcement of a contract with Dairy Palace provides the foundation to make that happen.”