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Genesee Valley Agri-Business Park

Company pitches idea of plant that converts food waste into energy at planning board meeting

By Howard B. Owens

A company with roots in New York, but currently based in Connecticut, is looking to build a plant at the Genesee Valley Agri-Business Park that would convert food industry waste into heat and electricity.

"We make green power out of organic waste," said Paul Toretta, CEO of CH4 Biogas, while presenting his company's plans to the Town of Batavia Planning Board. "Once the digester does its thing, it captures methane and powers an engine that makes green power and puts it on the grid. The engine produces heat that can be used to heat Quaker Muller and Alpina, helping them cut their heating bill."

The cost of the plant is $15 million and CH4 has already secured a $2 million Cleaner and Greener grant from NYSERDA to help fund the project, but is looking to the state for more help.

Toretta said state officials recommended the company present its proposal to the town planning board because the state wouldn't get behind the idea unless it has community support. The state backing would help the company secure bank loans to completely finance the project.

"We're in a holding pattern while looking for help with funding," Toretta said when asked about the timetable for the project.

Once funding is in place, the plant would take nine months to build. The design is already completed because it's the same design used by the company for plants in Wyoming County and Ohio (for Campbell's Soup).

"We only build one plant," Toretta said. "It's the same plant over and over again."

CH4 would use local contractors to build and maintain the plant, which would eventually employ eight people full time, Toretta said.

"When you put that much concrete and steel in the ground there will be a number of people employed," Toretta said.

The plant would be expected to last at least 30 years.

"The project is upfront capital intensive," said Toretta, who is originally from Potsdam. "It takes 15 years to return the money invested to do this. It's a slow, steady project. You borrow money and it takes 15 years to make any return."

CH4 already processes whey and other waste from the Alpina and Quaker Muller (no whey comes out of the Muller plant) in Wyoming County.

A plant in the ag park would reduce transportation cost and the impact on the environment to truck it more than 20 miles away.

The plant would also help the Genesee County Economic Development Center attract more food processors to the ag park, Toretta said.

Chris Suozzi, GCEDC's VP for business development, agreed.

"It would complement what we're already doing," Suozzi said. "It would definately help with the marketing when you have a green ag park. What better way to market the park and bring in more companies?"

The plant would be set up so it could take any sort of organic food waste, including waste from products that were already packaged but were found to be defective in some way so couldn't be shipped to customers. Toretta said the plant could separate the food waste from the packaging and then recycle the plastic or metal containers.

The plant would produce very little waste itself, but what it did produce would go into the local sewer system, but with much less biological chemicals and suspended salts than could otherwise go into the waste stream.

The plant would also produce little in the way of odor, which is important to Alpina and Quaker Muller because the plant would be upwind from those facilities.

"If there was any type of odor, as you can imagine, Campbell Soup would not allow us to operate our plant there," Toretta said.

National Grid approves grant for agri-business park expansion

By Howard B. Owens

Press release:

The Genesee Gateway Local Development Corporation (GGLDC) has been approved for a grant up to $130,000 from National Grid that will be used to continue the development of the Genesee Valley Agri-Business Park (GVAB). The Agri-Business Park is home to Alpina Foods, LLC, and Muller Quaker Dairy, LLC.

The GGLDC, the real estate affiliate of the Genesee County Economic Development Center (GCEDC), recently acquired 37 acres of land adjacent to the Agri-Business Park. The grant from National Grid will be used to extend the current electrical distribution line along the newly constructed access road, as well as the engineering and design of the extension of the road, water and sewer lines.

The approximate $600,000 project is being funded by the GGLDC and the New York State Homes and Community Renewal Agency and is expected to create approximately 100 construction jobs.

“National Grid continues to be a phenomenal partner in our economic development efforts in Genesee County and you have to look no further than to the continued growth of Agri-Park to see the return on investment of the various grants the company has provided through the years,” said Steve Hyde, president and CEO, GCEDC.

“Genesee County continues to be a model for how to do economic development in New York State,” said National Grid Regional Executive Dennis Elsenbeck. “We are confident that the job creation and capital investment made to date in the Agri-Business Park will continue to occur as Steve and his team expand its footprint.”

The approved grant will be paid out upon project completion and comes from National Grid’s Shovel-Ready Incentive Program, which was created to help make high-potential sites more marketable for the expansion of job-creating companies. Information about National Grid’s suite of economic programs is available at www.shovelready.com.

Route 5 being restriped to add left-turn lane at ag park entrance

By Howard B. Owens

Press release:

Work is slated to begin Monday, Sept. 30 to add a center left-turn lane on Route 5 (East Main Street) from the city of Batavia line to Fargo Road in the towns of Batavia and Stafford, Genesee County. Temporary lane closures will be in effect during the daytime hours for approximately one week weather permitting.

The center turn lane will be created by restriping the roadway without widening the pavement. One of the two existing westbound travel lanes will be converted to a center turn lane with associated left-turn lanes striped at the side street intersections. The remaining westbound lane will serve the westbound thru traffic. Both eastbound lanes will remain the same.

The addition of a dedicated left-turn lane will provide a refuge area, reducing the risk of rear-end collisions for stopped or slow-moving vehicles waiting to turn into the Batavia Agri-Park and adjacent side streets. The restriping will also benefit left-turning traffic at other intersections along the corridor, including Fargo Road, Batavia-Stafford Townline Road, Seven Springs Road, Broadlawn Avenue and the numerous residential and commercial driveways. Signs and other lane markings will alert motorists of the change.

This work is being administered by the Town of Batavia with concurrence from the New York State Department of Transportation.

Motorists should drive with caution through the highway work zone and avoid driving distracted or under the influence of drugs and alcohol. For real-time travel information, call 511 or visit www.511NY.org. 511NY is New York State’s official traffic and travel information source.

Photos: Construction begins on new roadway leading to ag park off Route 63

By Howard B. Owens

There's heavy equipment moving a lot of earth around just west of the Partridge Farm on Ellicott Street Road, Town of Batavia.

Crews are building a new roadway, which will provide secondary access to the Genesee Valley Agri-Business Park. The secondary road is needed to accommodate anticipated growth and expansion of the park.

Nine months after opening yogurt plant, Alpina buying 10 more acres in agri-business park

By Howard B. Owens

Press release:

Alpina Foods has confirmed its intent to purchase 10 acres of land adjacent its brand-new plant in the Genesee Valley Agri-Business Park. The acquisition doubles the company’s footprint, and comes only nine months after the grand opening of its 40,000-square-foot, $20-million facility that specializes in Greek yogurt production.

Alpina selected the site to build its first-ever North American manufacturing facility in 2011, after researching locations throughout the country. Company leaders felt the highly skilled Western New York workforce, thriving local dairy industry, and convenient access to major U.S. markets made Batavia an optimal location. The site is Alpina’s 10th global manufacturing facility, following locations in Colombia, Ecuador and Venezuela.

“This purchase reinforces our commitment to Batavia,” said Gustavo Badino, general manager of Alpina Foods. “We intend to expand here, and maintain this operation as our primary U.S. manufacturing location.”

The company already employs 55 at the plant, exceeding the goal of 50 the company committed to hiring by 2014, and expects to bring in additional team members in the coming months as production continues to increase.

Alpina will lay out its plans for the land over the next 24 months. Company leaders have worked closely with the Genesee County Economic Development Center, as well as the State’s Excelsior Jobs Program and numerous other state and regional economic development organizations in establishing – and expanding – its presence in New York State.

Alpina Foods is committed to its presence in Batavia, and works with many community organizations to make a positive impact on the region. Through the company’s philosophy of “collective prosperity,” Alpina strives to deliver success beyond its business dealings and constantly improve the community in which it operates.

“We are committed to our success in Batavia and the U.S.,” Badino said. “It is our corporate practice to grow with our surroundings, hand-in-hand with our neighbors.”

GCEDC CEO out of the spotlight during ceremony for big yogurt plant he helped put on the map

By Howard B. Owens

Throughout the 90-minute opening ceremony for the new Muller Quaker Dairy Plant in the Genesee Valley Agri-Business Park, Steve Hyde sat in the second row and smiled.

Not one speaker -- and there were five of them -- mentioned Hyde by name. There was no official recognition of his work to bring this day about.

Still, he smiled.

You couldn't help but think of a proud father watching his son or daughter graduate.

Asked how he felt afterward, Hyde, as he usually does when posed such questions, demurred and praised others.

"It’s a great day for everybody in the community," Hyde said. "This was a dream of mine and a lot of other partners. It’s 10 years in the making and this is just phase one."

Hyde has his critics. Genesee County Economic Development Center, the organization he runs, has its skeptics. But the Muller Quaker plant is a big deal, especially for a county of only 57,000 people that hasn't had a big factory opening in more than five decades.

PepsiCo and Theo Muller Group invested $200 million in the facility and that dollar figure doesn't count product development, designs for new trade-secret machinery to create the Greek-style yogurt, new software to run the plant and the planning that goes into bringing a new product to market.

Ken Adams, president of Empire State Development, indicated he was a little bit awed by the idea of a global powerhouse like Pepsi and a German-based company like Theo Muller coming to Upstate New York.

"Having PepsiCo here, having Muller here, is like a global seal of approval for this park and its infrastructure," Adams said.

And he gives a lot of the credit for making it happen to Hyde.

"Steve Hyde as far as I’m concerned, he really put the agri-business park, this particular location, on the map at a statewide level," Adams said. "Steve is always in Albany working very closely with the legislators from the area, senate and assembly, working very close with the governor’s office.

"I’ve told this to him, so I'll say it to you," Adams added, "Steve Hyde is a forceful, well respected advocate for investment and economic development here in Batavia. He really put the site on the map and then he also pulls everybody together at the local and state level to make sure a project like this actually goes smoothly. That’s important for the company, for the investors, that there are no hiccups along the way."

A critical factor with Muller Quaker -- called Project Wave during the planning process -- was the speed at which all of the necessary permits could be secured. A lot of credit goes to Town of Batavia and Genesee County officials, but the GCEDC staff laid the ground work to have a shovel-ready site and push the paperwork through the process.

In his speech today, Theo Muller praised the local authorities who got approval for the plant so quickly.

"It would be unimaginable in Germany," he said with a wink. "In Germany that would have taken at the very least three years. You have to send a whole case of yogurt to them over there to get anything done."

Sen. Charles Schummer called the ag park a great idea of local leaders and said when GCEDC came to him for help, he was happy to jump in and secure federal grants for infrastructure.

"There is no better way to strengthen our dairy industry and create jobs than to build a park like this, which has helped attract this great company," Schumer said.

Assemblyman Steve Hawley, who helped with the state legislative process on the project, noted that in any big project like this, stretching, as it does, across the boundaries of local, state and federal responsibilities, there are a lot of people who deserve credit for bringing it together, but Hyde certainly provided critical leadership.

"This is a big deal," Hawley said. "It's one of the largest plants in the country. We need jobs. I hear about it every day from constituents."

It takes a lot of work, Hawley said, to untangle the regulations that can hold up a business and a lot of people had a hand in bringing it together.

"A lot of the credit goes to Steve, but it's a team effort," Hawley said.

Danny Wegman, CEO of Wegmans and president of the Finger Lakes Economic Development Council, is also a Steve Hyde fan. He believes Hyde will pull off the gargantuan task of developing WNY STAMP, the proposed 1,200-acre, high-tech manufacturing park in Alabama that could employ 9,300 people some day.

It's an audacious project, but Wegman said when there are people passionate about projects, they can make things happen.

"Steve is very excited about this," Wegman said last week during the governor's visit to Genesee Community College. "There are a lot of confidential things that can't be shared, but I feel confident that if somebody I believe in is excited about it, the chances of it happening are pretty good."

The success of the ag park only enhances the chance's of success with STAMP, Adams said.

"We’re very hopeful," Adams said. "It’s a globally competitive industry. The opportunity is at STAMP. It’s a great site. It’s much bigger than this site, the agri-business park, but Steve has done a good job at lining up all of the vital ingredients for that site -- power, water, obviously the land, permitting, all the things you need to really be shovel-ready when the right business comes along. He’s the chief marketer. He’s going to Albany tomorrow. He’s on it and he works very closely my colleagues at ESD on marketing STAMP, so we have our fingers crossed."

Hyde said it's all about building on the natural assets of Batavia and Genesee County and showing that can be done with the ag park will translate into confidence for other projects, such as STAMP.

"It helps build credibility in the eyes of some of the folks in the leadership roles in the state that we know how to do this here at the local level," Hyde said. "This (agriculture) is an industry where the regional assets were in great demand and we could make an impact, and when you look at the regional assets in the nano stuff in our region we’ve got the same situation developing."

Officials optimistic about yogurt and Genesee County with opening of Muller Quaker plant

By Howard B. Owens

According to Indra Nooyi, CEO of PepsiCo, Batavians owe a big thank you to Danny Wegman.

No, not for promising one of his unriviled grocery stores to Genesee County, but for steering her attention toward yogurt and the need to produce it in Western New York.

"When I visited Danny in his flagship store in Rochester, Danny said to me, ‘Indra, you should get into the yogurt business because it’s growing extremely rapidly and if you do, the plant has to be located right around here in Upstate New York,' " Nooryi said. "I listened to Danny  because Danny is one of the most respected thinkers in the industry, and, Danny, we delivered on the promise.”

Wegman stood at the back of a tent crowded with local and state dignitaries and smiled broadly.

Last week, Wegman told The Batavian that it might take build out of the STAMP project in Alabama to bring a Wegmans to Batavia. Today, Wegman (top inset photo) had a slightly different take.

Coming out from a tour of the new Muller Quaker Dairy plant, he said, "more projects like this and we'll be here."

The dairy plant -- which will manufacture two brands of Greek-style yogurt, Muller FrutUp and Muller Corner -- officially opened today.

To start, it operates three production lines, employs 180 people in a 350,000-square-foot facility that could one day accommodate as many as 16 production lines.

Already, the plant produces 120,000 cups of yogurt per hour.

Sen. Charles Schumer announced during opening ceremonies that Muller Quaker has reached an agreement with the Upstate Milk Cooperative to source all of its milk from WNY dairy farmers.

The OA-TK-A plant in Batavia will produce the milk protein that Muller Quaker uses in its yogurt production (rather than strain milk as done in traditional Greek yogurt production, Muller Quaker adds protein to give its yogurt a similar rich, silky texture).

"This is an amazing shot in the arm for our economy here in Western New York and I am pledged to continue to do whatever I can do to make this the most successful venture in Western New York," Schumer said.

The project brings together two companies -- the worldwide giant in the food and beverage industry, PepsiCo, and a much smaller, but well respected, dairy company from Germany, the Theo Muller Group.

Stephan Muller, who moved to the United States to assume the reins of the new company, spoke about the entrepreneurial spirit, the risk taking of the $200 million investment by the two companies.

Muller represents the fifth generation of Mullers in the dairy business.

His father, Theo Muller, said through a translator, that the company made previous attempts to break into the U.S. market.

Stephen Muller described his father as a bit of a technophobe who never used a computer and then he got an iPhone just after Stephen Muller arrived in the U.S.

"He sent me a text message," Muller said. "I think it was his first one or one of his first ones. He said, ’520 years ago Christopher Columbus started his journey west with just three ships. Now you are our Columbus. Capital, excellent knowledge now are your ships, and one thing one cannot buy, the iron will to have success."

Nooyi (second inset photo) believes the product will be successful

PepsiCo already has a track record of success of developing a balanced portfolio of food and beverage products that she described as "fun for you, good for you and better for you."

"PepsiCo is becoming a real force in the good-for-you space," Nooyi said. "We have the best go-to-market systems and superior marketing, combined with Muller’s leadership in phenomenal dairy products, I think we’re going to become a real force in the dairy business in North America."

The success in just getting the plant open bodes well for Batavia, Schumer said. With 90 acres of available space at the Genesee Valley Agri-Business Park, there will likely be more jobs coming to town.

"We could employ as many as 1,200 more people when the food processors learn of the transportation advantages, the food production advatnages and just the work force advantages that we have here in this area," Schumer said.  "Food processors from around the world are learning what we have to offer."

Ken Adams, president of Empire State Development, said the success of today's opening is something that will attract more investment in the park, especially in supply chain support for Muller.

"It’s a very powerful confirmation of this facility, the agri-business park as a center for international investment," Adams said. "One thing I’m struck with at this ceremony is you’ve got a global leader like PepsiCo partnering wth Muller and obviously Quaker, the PepsiCo brand, coming together right here in Batavia. The project confirms Batavia, Genesee County’s position, certainly in the Northeast if not North America, as a center of the yogurt universe."

To purchase prints of these photos, click here.

Development pipeline for Town of Batavia getting crowded

By Howard B. Owens

It will be another summer of new commercial development in the Town of Batavia, with three  projects already up for Planning Board review, and that doesn't include the expansion project at Batavia Towne Center.

  • GCEDC/GGLDC is planning a second two-story building at the Upstate Med-Tech Center on R. Stephen Hawley Drive, across from GCC. The complex will be 60,000 square feet and be planned for industrial, research and office space.
  • An as-yet-undisclosed company is planning a 60,000 square foot cold storage facility at the Genesee Valley Agri-Business Park. It will be on 10 acres adjacent Alpina's plant and serve Alpina's cold storage needs. The facility require a 42-foot high silo, which is seven feet higher than allowed under current code without a variance.
  • A local man is planning a plant that will digest waste from yogurt production -- about 70 percent of the milk product from making yogurt becomes waste -- into products that can be used for other needs or converted into energy.

All three projects will be discussed at the planning board's meeting May 21.

Applications for COR's conversion of the former Lowe's location into four retail spaces hasn't reach the town yet.

There's also the housing development off Seven Springs Road that's still going through the planning process.

Photo: Chris Collins gets first look at Alpina yogurt plant

By Howard B. Owens

Roger Parkhurst provided Rep. Chris Collins with a tour of the Alpina Foods plant in the Genesee Valley Agri-Business Park today.

Parkhurst, left, gave Collins, who sits on the House Agriculture Committee, an overview of Alpina's history, the Greek yogurt market in the United States and the process Alpina uses to make yogurt locally.

The plant started production in October and Parkhurst said the operation has already grown to what it projected for its second year of business. There are 55 permanent employees with Alpina locally, and to help meet production demands, the plant uses up to 100 temporary employees at times.

There are already plans on the drawing board to expand the plant.

Land sought for composting facility to support mushroom farm at ag park

By Howard B. Owens

GCEDC released this notice today:

For several months it has been widely reported that a mushroom growing farm, involving a $20 million investment and up 100 new jobs to the region, is being planned in the Batavia Agri-Business Park. As this initial first phase of this project continues to move forward, we are now actively pursuing Phase 2, which seeks to purchase a minimum of 5 acres to 10 acres of vacant land for the development of a composting facility.

Besides the 5-10 acre size, other features that we are seeking are as follows:

  • Zoned for Agriculture -- it may be possible that commercial or industrial zoned land can work as well;
  • Water and electric service to the site;
  • Topography: flat and cleared is ideal but anything reasonably close will be considered;
  • Topsoil -- active farm land with topsoil is "not" required, therefore, if you can use or derive additional value by using/selling this topsoil then please do;
  • Preferred location is on the west side of Batavia in zip codes 14020 / 14036 /14013 / 14005 but areas anywhere within a 5-mile radius around the Agri-Business Park will be considered;
  • Landowners be assured that the buyer is a well-qualified cash purchaser.

Should this opportunity be of interest to you please contact Steve Blake at (716) 362-8707 or e-mail at : steve.blake@cbre.com

Photos: Muller Quaker hosts information session at GCC

By Howard B. Owens

If you've wondered what Muller Quaker Dairy is all about, or want to find out about employment opportunities, today was the day to meet executives, try out some yogurt or put in a job application at GCC.

Hundreds of people turned out in the afternoon and the event continues until 8 p.m. in the forum.

"We're excited to be a part of the local community, so we wanted to open our doors and let people know a little more about us," said Scott Gilmore, director communications for PepsiCo, one of the partners in the new yogurt plant at Genesee Valley Agri-Business Park.

There were executives on hand to explain plant design and operations, the booming yogurt industry and the nature of the partnership between PepsiCo and the Germany-based Theo Muller Group.

The yogurt plant is expected to employ nearly 240 people in its first round of hiring, and some local residents have already landed jobs with the company.

Muller Quaker HR personnel were on hand today accepting applications, meeting with job candidates and explaining more about employment options at the new plant.

At one point today, the job applicant line was more than a couple dozen people long.

Gilmore said people in blue jeans and people in suits showed up today, demonstrating the diversity of jobs that will be available at the plant.

If you're not able to make it to GCC by 8 p.m., Gilmore said the company plans more such community events, or job applicants can e-mail their resumes to employment@mullerquaker.com.

Alpina officially opens new yogurt plant in Genesee Valley Agri-Business Park

By Howard B. Owens

Big event in Batavia today that I wish I could have attended and covered -- the grand opening of the Alpina yogurt plant. We did assign a photographer and should have more coverage later, but meanwhile, here's the official photo and press release from Alpina:

Alpina Foods today celebrated the official Grand Opening of its first North American manufacturing facility, the latest yogurt plant to open in Upstate New York. Though the 67-year-old company has sold its broad line of dairy products in American markets for several years, the Batavia, N.Y. facility is its first plant in the U.S.     

Joined by U.S. Congresswoman Kathleen Hochul, New York State Senator Michael Ranzenhofer, and Empire State Development President and CEO Kenneth Adams, top officials from Alpina Foods and its Colombian parent company, Alpina, marked the occasion with a ceremonial ribbon cutting.

“This is a momentous day for Alpina,” said Julian Jaramillo, Alpina’s CEO. “We would like to recognize the many people and organizations across the state that have helped make this moment a reality. We are excited to get started and continue to grow along with our employees, the region, and the yogurt industry in New York.”

The Alpina Foods plant already employs 30 new employees, and expects to hire at least 20 additional team members in the coming months. This is in addition to the 20 employees located in Alpina Foods’ Miami offices and in regional positions elsewhere in the U.S.

Over the past year, with the help of co-packing partners, the company has launched several new products for U.S. consumers: Alpina Revive Greek yogurt, Alpina Restart traditional yogurt, Alpina Renew oat smoothie, Bon Yurt by Alpina low-fat vanilla yogurts, and Juan Valdez Café Latte by Alpina.

“Today’s opening of Alpina Foods marks an exciting new phase of economic development in Genesee County and Western New York,” said Rep. Hochul. “With the initial creation of up to 50 jobs, Alpina will significantly contribute to the economic vitality of the region. I look forward to working with Alpina, the Genesee County Economic Development Center, and local farms as we work to strengthen Western New York’s economy.”

"The State Legislature, working with Governor Cuomo, has made tremendous strides in improving New York State's business climate,” said Senator Ranzenhofer. “Especially during the last two budget cycles, the decision to cut spending and lower taxes has signaled to many companies that New York is the right place to do business, and for many yogurt companies, such as Alpina, it has positioned Genesee County and Batavia as the 'Yogurt Capital' of the world. I applaud Alpina for opening its first U.S. facility in the Genesee Valley Agri-Business Park."

Drawn by access to the thriving agriculture and dairy industry of Upstate New York, along with a ready labor market, Alpina chose Batavia for its 10th global manufacturing facility, following locations in Colombia, Ecuador and Venezuela. The company worked closely with the State’s Excelsior Jobs Program and numerous state and regional economic development organizations on the location of the 10-acre site, and was further attracted to the region after its work with nearby Cornell University and Rochester Institute of Technology.

“Under Governor Cuomo’s leadership, the production of Greek yogurt has become a critical job creator and driver of economic activity in New York State,” said Empire State Development President, CEO & Commissioner Kenneth Adams.  “A number of major yogurt manufacturers have taken advantage of this region’s existing infrastructure, including the Genesee Valley Agri-Business Park, which is available for dairy processing, as well as its skilled workforce, proximity to milk supply and ability to reach target markets. We welcome Alpina Foods to the U.S. and are so proud that they have chosen to locate its first specialty yogurt plant in the U.S. right here in Genesee County.”

All Upstate New York residents are likely to appreciate Alpina Foods’ new location. The company is well known for its commitment to the communities in which it operates. With a philosophy that leadership refers to as “collective prosperity,” Alpina Foods wants to transfer success beyond the company, and positively impact the surrounding community, including their employees, business partners, the environment, and others in the region.

“We are committed to our success in Batavia and the U.S.,” said Alpina CEO Julian Jaramillo. “It is our corporate practice to grow with our surroundings, hand-in-hand with our neighbors.”

Photo, from left: Juan Pablo Fernandez, GM, Alpina Foods; Julian Jaramillo, CEO, Alpina; Roger Parkhurst, Director of Operations, Alpina Foods; Congresswoman Kathy Hochul; state Senator Michael Ranzenhofer; Kenneth Adams, President & CEO, Empire State Development.

New roadway will connect agri-business park to Route 63

By Howard B. Owens

Town of Batavia planners are pushing forward with a proposal to add a second roadway into the Genesee Valley Agri-Business Park, connecting the park with Route 63.

Town Engineer Steve Mountain said the need and opportunity for the roadway is driven by the requirement of the Muller Quaker yogurt plan for a gas main into the park and a $1 million grant for infrastructure upgrades from state's Office of Community Renewal.

The roadway was always part of the plan, Mountain said, but not until Phase 3.

In the nearer term, the town was going to construct an emergency vehicle access road through the County Highway Department's lot on Cedar Street, but it is more cost effective, Mountain said, just to build the connector to Route 63 now.

The design of the roadway needed to coincide with the gas main design for Muller Quaker, and Muller Quaker wanted to bring the line in through vacant property to save costs.

The vacant land is primarily made up of parcels owned by O-AT-KA Milk Products and local farmer Don Partridge.

The town is negotiating now with both property owners for a right-of-way access, but all of that land (in green on the map) was always intended to be part of the Phase 3 development of the agri-business park (and has already been through the environmental review process).

Mountain said Phase I of the park is already nearly full and it's his understanding that Partridge has received offers on his land.

Currently, the only developed roadway into the park is from Route 5.

Alpina Products will hold a ribbon-cutting Monday for its new facility, which will initially employ 50 people.

Next year, the Muller Quaker plant, a joint venture between PepsiCo and the Theo Muller Group, will open with an original staff requirement of about 200 people. A mushroom farm and labeling facility (already open) are also among the park's first announced tenants.

Initially, Phase 2 of the development was to extend the rail line into the park, but there's been no demand for it yet from potential tenants.

Among the benefits of the Route 62 access point is that O-AT-KA will be able to use the roadway for truck traffic to his own facility, making the intersection of Route 63 and Cedar Street safer.

A public hearing on the revised planning map is set for Tuesday, Oct. 16, at Batavia Town Hall. More details of the project will be revealed then.

Gillibrand announces $200K USDA grant for secondary road at ag park

By Howard B. Owens

Press release:

U.S. Senator Kirsten Gillibrand today announced a federal grant worth $199,821 for a secondary access road at the Genesee Valley Agri-Business Park.

The funding is allocated through the USDA’s Rural Business Enterprise Grant program, and is being awarded after Senator Gillibrand toured the nearly finished Alpina Yogurt facility and called for more federal investments in infrastructure at the ag-park in Batavia.

“This is an important investment that can help attract more businesses to the Genesee Valley ag-park, and support more jobs right here,”Senator Gillibrand said.

“I know the potential the ag-park has to help local businesses grow and be a major economic driver for the region. Investing in transportation infrastructure is one of the fastest, most effective ways to create new jobs now, and lay the foundation for more jobs to come.”

In September 2011, Senator Gillibrand helped secure an additional $58,000 from USDA Rural Development for initial infrastructure upgrades at the agri-business park, including expanding existing roads and utilities.

Senator Gillibrand also brought a USDA official to Batavia in April 2012 to tour the Genesee Valley Agri-Business Park and hear firsthand from local leaders about the need for federal investments to grow this critical industry for the region.

In addition to the USDA, Senator Gillibrand has been active in pushing for federal funds through the U.S. Economic Development Administration to complete infrastructure improvements at the ag-park.

The federal grant funding will be used to design, engineer and construct a secondary access road at the ag-park, a key component of a range of planned infrastructure improvements, including the construction on an aquifer that is required by food processors.

Muller Quaker Dairy, an international yogurt producer, and Alpina Foods would greatly benefit from the completion of the aquifer and would contribute to an increased investment in Genesee County.

Upon the completion of the infrastructural improvements to the Ag-Park, Muller Quaker Dairy would be able to complete a $206 million yogurt manufacturing facility that they expect could generate approximately 186 jobs in the near-term, with the ability to create up to 600 jobs in the long-term. Alpina also expects to be able to create approximately 50 new jobs as a result of finishing the construction.

Photos: Silo raising at Alpina plant

By Howard B. Owens

Workers today are installing the first two silos at the new Alpina Products plant in the Genesee Valley Agri-Business Park, Batavia.

The first silo is 40 feet tall and will hold up to 20,000 gallons of raw milk. The second silo is half the height and will hold 12,000 gallons of whey.

More silos can be added as the capacity of the Greek yogurt plant increases.

More pictures after the jump (click on the headline to continue):

Genesee County named one of top areas in nation for food processing growth

By Howard B. Owens

Press release:

For the third year in a row Genesee County has been recognized in the top five of the rankings in the Metro Food Processing Industry Growth category by "Business Facilities" a national site selection publication.

The agriculture industry in Genesee County employs more than 1,500 workers, a number that will dramatically increase with the opening of Alpina Foods, LLC, and PepsiCo/Muller yogurt manufacturing facilities.

“The construction of two major new food processing facilities by Alpina and the joint venture between PepsiCo and Theo Müller demonstrates a significant return on our investment in our Agri-Business Park which we believe is driving our high national ranking,” said Steve Hyde, president and CEO of Genesee County Economic Development Center (GCEDC). “We are honored to be once again recognized by 'Business Facilities' as it keeps us on the radar screen for site selectors throughout the United States and the world.”

The Genesee Valley Agri-Business Park encompasses 202 shovel-ready, pre-permitted acres strategically located between Western New York and the Finger Lakes Region. On site there is access to low-cost process water via a local aquifer that produces more than six million gallons per day and a pretreatment facility as well as rail access.

Through the support of National Grid and National Fuel, the site has an enhanced utility infrastructure. The agri-park was originally a public-private partnership between GCEDC and Farm Credit East.

“The Agri-Business Park in Genesee County is perfectly tailored to fill a niche in our region created by our productive agricultural sector,” said Mary Pat Hancock, chair, Genesee County Legislature. “It makes perfect sense to have those who process food to have their facilities as near as possible to where the food is produced.

"It makes for a better, safer, and tastier product and is also more efficient.  Our resources lend themselves to food processing and our location is ideal for quick market access. We look forward to continued success and expansion.”

Alpina Foods LLC, one of the most recognized dairy companies in the world and a leading dairy producing company in Colombia and South America, has decided to open its first specialty yogurt manufacturing plant in the United States at the Genesee Valley Agri-Business Park.

PepsiCo, in a joint venture with German dairy company Theo Müller, also broke ground earlier this year on a $206 million yogurt manufacturing facility at the park. Other food processing facilities in Genesee County include O-AT-KA Milk, Yancey’s Fancy and Allan’s Canning. 

“The significant dairy supply, abundance of fresh water, and talented workforce are just some of the assets that attract food manufacturers such as PepsiCo, Theo Müller and Alpina foods to Western New York,” said Mark S. Peterson, president and CEO of Greater Rochester Enterprise. “It’s no wonder that more than 100 food manufacturers have operations here.”

“Genesee County’s strategic location and agricultural assets make it a prime location destination for the food processing industry,” said Thomas A. Kucharski, president and CEO of Buffalo Niagara Enterprise.

“The vision Genesee County officials have shown in developing shovel-ready sites like the Genesee Valley Agri-Business Park has distinguished them among peer communities and allowed us to succeed in attracting global investment and job creation like Alpina, Mueller and more."

County officials get high praise from executives, governor for bringing new yogurt plant to Batavia

By Howard B. Owens

PepsiCo and Theo Muller officials along with Gov. Andrew Cuomo praised the efforts of local leaders to convince the two international companies to locate their new yogurt plant in Batavia.

The executives, elected officials along with a host of local dignitaries gathered at the new Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park today for a dedication ceremony for the new plant.

Indra Nooyi, CEO of Pepsi, said once it was time to make a decision about the location for the plant, Batavia was an easy choice.

"I must say the Genesee County people and the governor’s office were just amazing in the way they worked with us," Nooyi said. "There was no competition. We love being here. The Genesee County people have to be given a lot of credit, the way they brought the forces of the county together to get everything expedited in such a short time. I think it is a real textbook example of how to attract investment into any community."

Stefan Muller, the CEO of the newly formed Muller Quaker Dairy company, said the day that executives traveled to the Genesee Agri-Business Park, the amount of support Genesee County lined up for the visit was impressive. There were representatives from local government and utility companies making promises on delivery of what Pepsi and Muller would need to build the project.

"I have seen 60 sites that were just locations on a map and I have seen six sites personally, but what we saw here was just outstanding," Muller said. "We were promised to get all of the permissions within weeks and we couldn’t believe it."

Gov. Andrew Cuomo also praised Genesee County officials and said the effort to bring the Muller Quaker plant to Batavia is an example of how New York is open for business.

“We want business in New York," Cuomo said. "Business is the engine that drives the train, providing the jobs, providing the opportunity, providing the career ladder, providing the revenues to local governments. It’s all about making the private sector run and making the private sector run well and government partnering with that private sector. “

Yogurt, Cuomo said, is quickly becoming a big part of New York's economy -- production is up 60 percent in the past few years and there are now 49 yogurt plants in the state. He said the state is committed to ensuring the yogurt industry succeeds.

"We believe in the yogurt story and we’ve invested in the yogurt story," Cuomo said. "It is a big, big business in the State of New York."

He announced an Aug. 15 summit of leaders in the yogurt industry and dairy leaders to help facilitate, he said, the two groups working together to grow the yogurt industry.

"We want this business to do well," Cuomo said. "We want this business to thrive and we want this business to thrive in the State of New York."

Pepsi is committed to growing in the nutritional food categories, and dairy in particular, Nooyi said.

"Dairy products are a $500 billion industry that is expected to grow rapidly in the high single digits," Nooyi said. "We believe that here in the United States the growth potential for dairy is virtually unlimited."

The yogurt market, she said, is "largely untapped." The per-capita consumption of yogurt in the U.S. is half what it is in many other countries."

Muller said the new product is sweeter than what Theo Muller makes in Germany to meet U.S. consumer expectations and Nooyi praised the new yogurt.

"The Muller Quaker Dairy line is going to bring a whole new taste experience to America that’s not like anything that’s available in the country today," Nooyi said. "Try it and you’ll see that it’s more rich than any other yogurt you've tasted.

"It’s creamier. It’s more delicious. It doesn’t have any chalky aftertaste. It's really something you’ll enjoy eating day in and day out, maybe even three or four times a day."

Muller said the online feedback on the new product has been fun to read.

"I read on the Internet, on a blog, one consumer was writing, she tried the product two weeks ago and she is writing it is insanely delicious," Muller said. "This was really, I think, the right comment."

Both chief executives praised their new business partner as the perfect fit for how each company would like to grow.

"I have to say it was good and smart that we took the time because we found the right partner with PepsiCo and the yogurt market is booming," Muller said. "It’s still a very small market compared to other countries and we have products which are very unique and are really outstanding for the American market."

Nooyi said Pepsi has the distribution system to get the new product onto store shelves throughout the United States.

She also said the two companies share a core value in being committed to their local communities.

"One of the reasons this is a great partnership is both companies are committed to growing our businesses and both are committed to growing our local communities," Nooyi said. "When this plant is complete next year, it will be one of the largest yogurt plants in the United States. It’s going to source largely from New York State dairy farmers and other quality suppliers around this great region. The best part is it will create 186 local jobs next year."

Schumer announces $1 million public works investment for ag park

By Howard B. Owens

Press release:

Today, Senator Charles E. Schumer announced a critical funding commitment for the Genesee Gateway Local Development Corporation (GGLDC) through the Economic Development Administration (EDA), to complete essential infrastructure improvements at the Genesee Valley Agri-Business Park (GVAB) in Batavia.

In March of 2012, Schumer urged the EDA to support the ag park’s water system after the GGLDC applied for a $1 million investment from the EDA Public Works Program, which will go toward infrastructure improvements needed to support Muller-Quaker partners' -- Theo Muller Group and PepsiCo -- new $206 million yogurt manufacturing facility in the ag park.

Today, the EDA notified the GGLDC that the agency was granting it a $1 million preliminary award pending receipt of final supporting documents.

“This federal investment will mean more jobs and economic activity in Upstate New York, and more demand for our dairy farmers’ product. It is great news for the Genesee County’s Agri-Business Park that further solidifies Upstate New York’s place at the top of the rapidly expanding Greek yogurt production industry,” Schumer said.

“I urged the Economic Development Administration to support this project so that Genesee can pave the way for a major new water system at the Agri-Business Park in Batavia, helping to sprout hundreds of new jobs and Pepsi’s new Greek yogurt plant.

"The Agri-Business Park is going to be a huge driver of jobs and economic growth, and it’s clear that EDA agrees we need to make this investment to create jobs and new markets for our farms and dairies. The EDA made a smart choice and will get real bang for their buck with this investment.”

In March of 2012, Schumer wrote and personally called EDA Acting Assistant Secretary Matthew Erskine to issue his support and noted that this investment would allow the ag park to construct an aquifer-direct water system, which is required for food processing and yogurt-product manufacturing.

The federal award will also help the project leverage millions in private-sector investments and will create approximately 186 jobs at the plant, all while providing a critical boost as Genesee County and Upstate New York work to keep pace with the lucrative and fast-growing yogurt production industry.

The GGLDC will use the $1 million, plus a local match, to construct an aquifer-direct water system required by food processors as municipal water is not optimal for the manufacturing process of yogurt products.

In addition to PepsiCo’s Muller-Quaker plant, the aquifer system will be utilized by other tenants at the park, such as yogurt product producer Alpina Foods. Alpina is in the process of constructing a 40,000-square-foot yogurt processing facility in the ag park and anticipates beginning production late this summer with the hiring of 50 new employees.

Schumer highlighted the fact that multiple economic development projects would be set to utilize this aquifer system once constructed, and noted that the project fits squarely in line with the administration’s focus on developing regional clusters of growth in specialized high-tech manufacturing.

This funding will help Genesee County close an over $1 million funding gap needed to upgrade the park’s road and sewer infrastructure to accommodate forthcoming new tenants like Muller-Quaker, Alpina, and Genesee Valley Mushroom.

In May, Schumer led the effort to secure $105,000 from the USDA to upgrade an essential pump station necessary to increase the park’s wastewater system’s capacity to support the park’s new tenants. To overcome the last of this funding gap, Schumer is also spearheading an effort to secure a $200,000 grant from USDA to construct the required secondary access road into the park. The USDA expects to announce winners of that grant within the next few weeks.

Earlier this year, Schumer urged Muller-Quaker partner PepsiCo, to source as much of the milk for their product as they can from New York’s dairy farmers. The new plant, to be built in Batavia, will create 186 jobs primarily around the manufacturing of various Greek yogurt products. Schumer noted that the plant will be the largest manufacturing operation to locate in Genesee County in the past 50 years.

Dairy processing has significantly increased, thanks to the opening of several new yogurt plants in the state, and the new Muller-Quaker plant represents the latest opportunity to increase demand for New York dairy products, a welcome boost for New York’s long-suffering dairy farmers.

The EDA Public Works Program provides funding for distressed communities to revitalize and upgrade physical infrastructure to attract new industry, encourage business expansion, and diversify local economies.

The Economic Adjustment Assistance Program helps address the needs of communities experiencing adverse economic changes that may occur suddenly or over time caused by international trade, long-term economic deterioration, loss of major community employer, or loss of manufacturing jobs. Funding can be used for infrastructure improvements like sewers.

Gillibrand tours Alpina, says she's excited by signs of local economic growth

By Howard B. Owens

Sen. Kirsten Gillibrand spent some time in Western New York on Tuesday, including at least two stops in Batavia.

Gillibrand met with area Democratic leaders for lunch at Larry's Steakhouse and then toured the Alpina Products factory under construction at the Genesee Valley Agri-Business Park.

The facility, which will produce Greek yogurt and other dairy products, is nearing completion and should open in late August or September.

Gillibrand said seeing what is happening at the ag park -- which includes construction of a dairy production facility across the road from Alpina by PepsiCo and the Theo Muller Group -- is "really exciting."

"It's such an opportunity for agricultural growth in this region," Gillibrand said. "Not only is Greek yogurt production one of the fastest growing products in New York, but nationwide, and it's so well located with all of our dairies that are so close by. It makes business sense. Not only do we have a great workforce, but we have a great product, so it's going to be exciting to create these jobs, to have this industry grow in Western New York."

While there's been conflicting reports on whether New York dairies can produce enough milk to meet the demands of the new and existing Greek yogurt factories in the state, Gillibrand said she believes the dairies can meet the demand.

She said she has also introduced legislation to help New York's small dairies increase production without driving up their insurance costs.

Currently, if a small dairy wants to add a significant number of milk-producing cows, they're going to hit a cap on production imposed by insurance rules.

Gillibrand's legislation would remove the cap.

"That might give the ability of a small dairy to go up to 300 or 400 cows to meet the needs of their customers," Gillibrand said. "That would make a big difference for these projects."

Yogurt producers, Gillibrand said, don't want the expense of trucking in milk from other states to keep their production lines going and her legislation would keep the local milk flowing, she said, adding that there would be no regulatory burdens for small dairies to grow to meet local demand.

Steve Hyde, CEO of Genesee County Economic Development Center, also introduced Gillibrand to the STAMP project -- the 1,300 acre high-tech/nano-tech park that has been in planning for five years.

The senator took quite an interest in the project. She noted that with New York's previous success in Luther Forest -- the nano-tech corridor developing between Buffalo and Albany -- the surrounding technology-oriented university system, and the investment already made in the project, STAMP has a good chance to attract major manufacturers.

It was a validation of how the community and region came together on the ag park to have Gillibrand in Batavia on Tuesday to tour the Alpina facility.

"It’s really kind of heartwarming because this ag park was really nine-and-a-half years in the making," Hyde said. "Once we found a way to get it all done, get it funded, get it built, having two very significant manufacturing projects land in our back yard – like we talked about today, talk about the multiplier effect, Alpina’s working with OA-T-KA, and Stueben Food and a company in Rochester on packaging -- it’s just really really awesome."

Photos: Construction progress at the Genesee Valley Agri-Business Park

By Howard B. Owens

I stopped by the Ag Park this afternoon just to see how construction is coming along -- Haskell has made some visible progress on the Pepsi/Muller Project Wave plant.

I happened to be on hand when some bedrock was blasted from the ground.

Perhaps not surprisingly, this sign warns that only Pepsi products are allowed in the construction area.

For those keeping score, it look like a majority of the vehicles in the employee parking lot had New York license plates.

Meanwhile, most of the work for the new Alpina plant is now taking place inside the new building. Alpina is on schedule to start producing yogurt in Batavia some time in August.

I didn't get a picture, but the Marktec building is completed.

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