Governor Shapiro Secures Historic $1.2 Billion Investment from Chobani to Establish its First Dairy Operation in Pennsylvania and Create 900 Jobs, the Largest Single Investment in Agriculture in Commonwealth History

Chobani’s acquisition of a Lehigh Valley facility will create more than 900 jobs and at full scale, source more than 3 billion pounds of Pennsylvania milk annually — equivalent to approximately 30 percent of the milk produced in the Commonwealth today.

With Chobani’s growth and shared focus on family farms and rural communities, their decision to expand into the Commonwealth signals confidence in Pennsylvania’s dairy farms to meet consumer demand with great dairy products.

Since taking office, Governor Josh Shapiro has competed for and won over $43 billion in private sector investments, creating nearly 27,000 new jobs and driving economic growth across the Commonwealth.

Schnecksville, PA – Today, Pennsylvania Governor Josh Shapiro, Department of Agriculture (PDA) Secretary Russell Redding, Department of Community and Economic Development (DCED) Secretary Rick Siger, and Department of Revenue Secretary Pat Browne announced the Commonwealth has secured a historic $1.2 billion investment from Chobani to establish its first dairy product manufacturing operation in Pennsylvania. This major project — the largest ever private investment in Pennsylvania’s agriculture industry — will create 900 full-time jobs over the next five years in the Lehigh Valley and greatly expand markets and opportunities for more than 4,000 dairy farmers in Pennsylvania.

“I’ve spent a lot of time on our farms and in our rural communities, hearing directly from Pennsylvanians about the kind of investments they want to see in our Commonwealth. This $1.2 billion investment from Chobani is the largest private sector investment in the history of Pennsylvania’s agriculture industry and will strengthen our dairy industry, support our farmers, and reinforce our position as a national leader in agriculture and food manufacturing,” said Governor Josh Shapiro. “Pennsylvania is aggressively competing for — and winning — the biggest economic development projects in the country because we’re making strategic investments, moving at the speed of business, and giving companies confidence that they will thrive here – and I’m proud this investment will benefit our dairy industry and rural communities.”

Chobani will assume operations of Keurig Dr Pepper’s (KDP) manufacturing facility, equipment, and related infrastructure, where Chobani plans to manufacture innovative food products beyond yogurt.

The 1.5 million-square-foot facility, located at 7356 Industrial Boulevard in Upper Macungie Township, will accelerate Chobani’s ability to innovate and produce the next generation of better, more wholesome foods while creating new opportunities for Pennsylvania workers, farmers, and suppliers.

When fully operational, the facility is expected to process more than three billion pounds of Pennsylvania milk annually — equivalent to approximately 30 percent of all milk currently produced in the Commonwealth — the largest increase in demand for Pennsylvania dairy in the state’s history. The project will create a significant new market for the Commonwealth’s family dairy farms, helping them grow and strengthen their businesses for generations to come.

“Pennsylvania is home to one of the highest number of family-owned farms in the country. When we walked into this factory, we knew it was a great fit for what we want to build for the future,” said Hamdi Ulukaya, Founder & CEO of Chobani. “There were many challenges along the way, and this project would not be possible without Governor Shapiro and his team bringing people together and finding ways to move things forward. I want to thank the Governor’s team, Senator McCormick, our local leaders, and most of all, the farmers who make all this possible. We’re so happy to be here bringing our future innovation to life in Allentown, made with fresh Pennsylvania milk and delivered to families across the country.”

This investment by Chobani is a major step forward for Pennsylvania’s dairy industry and, most importantly, for the farm families who are its foundation. Pennsylvania has the second highest number of dairy farms in the nation – and agriculture is a key pillar of Governor Shapiro’s economic development plan. For years, the Commonwealth’s dairy farm families have been eager for more processing and market access opportunities. This historic project brings expanded processing capacity and increased demand for Pennsylvania-produced milk, strengthens the Commonwealth’s dairy supply chain, and keeps more of the economic value of Pennsylvania milk within the state.

“This announcement is the biggest change for our dairy industry in a generation and represents the culmination of a journey built on collaboration, persistence, and a shared belief in the future of Pennsylvania dairy,” said Agriculture Secretary Redding. “Since day one, Governor Shapiro has been clear that our dairy producers are among the best in the world, and maintaining our leadership requires investment, innovation, and a strong processing infrastructure to create markets for the milk they produce. His commitment has been to ensure Pennsylvania is not only a great place to farm, but also a place where agricultural businesses choose to invest, grow, and add value.”

The Governor’s BusinessPA team worked with Chobani to build out the agricultural and public infrastructure necessary for a project of this scale. To support Chobani’s investment in Pennsylvania, the Commonwealth will provide $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program to support infrastructure and site improvements necessary for the project and broader regional economic development.

Additionally, the Commonwealth will continue to drive out $127 million in loans and grants available directly to eligible Pennsylvania dairy farmers to meet the significant new demand for Pennsylvania milk products.

Chobani may also be able to access tax credits through the Department of Revenue’s Pennsylvania Economic Development for a Growing Economy (PA EDGE) program’s Pennsylvania Milk Processing (PMP) Tax Credit in the future.

The Shapiro Administration is also supporting this project through Governor Shapiro’s Pennsylvania (PA) Permit Fast Track Program, which was designed to make the Commonwealth more competitive to new business by streamlining the permitting process for key economic development and infrastructure projects, increasing transparency, and accelerating timelines to ensure state government delivers results quickly and efficiently.

“Chobani’s historic investment in Pennsylvania is a tremendous win for our Commonwealth, our economy, and our agriculture industry,” said DCED Secretary Siger. “This project in the Lehigh Valley will further strengthen Pennsylvania’s world-class dairy industry by creating new opportunities for our farmers, supporting local suppliers, and building a stronger food manufacturing ecosystem. Governor Shapiro’s economic development strategy is focused on making bold investments like this one that support businesses and create real opportunity for Pennsylvanians.”

For Chobani, the investment is about more than establishing a new manufacturing operation. It is about putting down roots in the Commonwealth and becoming part of the communities surrounding the facility.

Chobani will bring competitive wages and industry-leading benefits while creating opportunities for more than 900 people to build careers in advanced food manufacturing.

The company will also work alongside farmers, local governments, economic development organizations, and community partners to strengthen the infrastructure, workforce, and supply chains necessary for sustainable growth.

“Chobani’s investment reinforces the faith in our dairy farmers and manufacturers, and the role they play in moving our economy forward,” said Pennsylvania Department of Revenue Secretary Pat Browne. “This also demonstrates that policy and tax reform changes we have made, including the phased reduction of the corporate net income tax, have led to significant investments by businesses in the Commonwealth. We’re proud to continue to partner with Governor Shapiro on initiatives that consistently position Pennsylvania as a strong, reliable market for economic growth.”

Key local partners supporting the project include the Lehigh County Authority, Upper Macungie Township, Lower Macungie Township, South Whitehall Township, and the City of Allentown.

Production under Chobani is expected to begin in 2027.

“We welcome Chobani and its $1.2 billion investment in Pennsylvania to the portfolio of internationally known companies producing brand-name products here in one of America’s top manufacturing markets,” said Don Cunningham, President & CEO of the Lehigh Valley Economic Development Corp. “We are grateful to Chobani for selecting the Lehigh Valley and to Gov. Josh Shapiro for this historic investment in Pennsylvania agriculture. These wins don’t happen by accident. Once again, the region’s economic success has been supercharged by the Shapiro Administration’s hard work, focus, and investment, and the coordinated effort of so many in the Lehigh Valley.”

“Planning for the future of our water and sewer systems is simply essential if we want healthy, growing communities,” said Liesel Gross, CEO, Lehigh County Authority. “LCA was honored to have a seat at the table to explore ways to make a Chobani location in the Lehigh Valley a reality, and we look forward to building a strong partnership with Chobani in the years ahead.”

“Chobani’s investment in Pennsylvania is an investment in the 4,300 family-owned dairy farm businesses across the Commonwealth,” said Jayne Sebright, Executive Director, Center for Dairy Excellence. “The facility in Allentown brings new market opportunity to Pennsylvania’s dairy industry, helping to strengthen the viability of these individual dairy farm families while revitalizing our rural communities that depend on the economic revenue and jobs these farms provide.”

Today, Chobani also made an in-kind donation to Community Action Lehigh Valley.

“No one should have to choose between paying their bills and feeding their family. During Hunger Action Month, we call on our community to stand with our neighbors facing food insecurity,” said Dawn Godshall, CEO, Community Action Lehigh Valley. “Hunger is solvable when people come together with compassion, commitment, and action. Every donation, every volunteer hour, and every voice raised in advocacy helps build a stronger, healthier community for all.”

Pennsylvania’s Agriculture Sector is the Backbone of the Commonwealth

With more than 48,800 farms contributing over $132 billion a year to the economy and supporting nearly 600,000 jobs in Pennsylvania, agriculture is foundational to the Commonwealth’s heritage and future. Governor Shapiro has prioritized strengthening both agriculture and food security — helping farmers, families, and communities thrive.

The 2026-2027 bipartisan budget Governor Shapiro signed earlier this year continues this work by:

Maintaining $10 million for the Agricultural Innovation Grant Program to continue driving innovation in Pennsylvania agriculture.
Continuing $13.8 million to fully fund the Pennsylvania Farm Bill to support business planning, infrastructure, and workforce development.
Increasing the cap for capital development projects, which includes agricultural projects, in the Pennsylvania Industrial Development Authority (PIDA) program from $200,000 to potentially up to $2 million.
Directing funding to the Center for Dairy Excellence to support new and existing programs to help farms scale to meet increased demand.
Sustaining funding for the Dairy Development Specialist who works across the dairy industry to support producers and processors by connecting them to resources, markets, and training.

Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy, to build a stronger, more competitive economy for all Pennsylvanians.

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