HP Hood Expanding into Batavia

Cuomo: Dairy plant to create 230 permanent jobs; $330 economic impact

Mike Baggerman
July 11, 2017 - 5:20 pm

WBEN Photo/Mike Baggerman

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BATAVIA, N.Y. (WBEN) - Governor Andrew Cuomo announced the expansion of the HP Hood Dairy Plant in Batavia on Tuesday afternoon.

The governor said the expansion will create 230 permanent jobs while adding 500 construction positions thanks to a $200 million investment by Hood.

WATCH: Governor Cuomo announces expansion of HP Hood Dairy Plant in Batavia

HP Hood LLC purchased the former Dairy Farmers of America Plant in the Genesee Valley Agri-Business Park. It's a company based out of Massachusetts that does over $2 billion in business annually. 

The plant was originally constructed by Pepsi and Muller-Quaker to process yogurt and was later purchased by DFA, a national, farmer-owned dairy cooperative, in 2016 according to a press release. 

Hood is repurposing the building to produce extended shelf-life beverages. It will construct a 100,000 square foot refrigerated warehouse, utilizing the 500-plus construction jobs.

"It will synergize the dairy industry because it's a key component to keeping that cycle of the dairy industry running," Governor Cuomo said. "It just fits perfectly for the Finger Lakes on a number of level. Both in and of itself and what it's going to mean for the entire industry."

Cuomo said it was unfortunate that the original businesses failed but that it's part of the reality of doing business.

"For every ten businesses that start, by the end of five years, half of them are gone," he said. "By the time you get to ten years only a third are left. That is the natural business cycle. That happens. You want to bring businesses to New York and want to start ten businesses. You better be ready at the end of five years to see a 50 percent dropoff and be ready to re-purpose those facilities.

The governor said it's a net positive for the region and for economic development. He announced that Empire State Development is giving the company a $5 million tax credit through its Excelsior Jobs Program and a $2 million capital grant from the Upstate Revitalization Initiative. 

"The way the excelsior tax credits work is you only get the credit to the extent you perform," Cuomo said. "It's for the jobs that are created for the period of time they are created. Once those jobs are not created then the state subsidy stops." 

Officials estimate the economic benefit to the region to be more than $330 million over ten years. 

LISTEN: Governor Cuomo answers questions about Hood Dairy Plant

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