New York-based Cayuga Milk Ingredients is undertaking an ambitious evolution of its business strategy. The farmer-owned dairy cooperative, which has traditionally focused on producing bulk ingredients, today is expanding into retail dairy products to create more value for its farmer-owners.
The initiative includes the opening of a new $275 million processing plant in Auburn, New York, located in the state’s Finger Lakes region. The state-of-the-art facility will also support local farms while adding jobs across the region.
“We are proud to now off er a streamlined solution that delivers high-quality dairy products from the farm to the shelf,” noted Aimee Galindo, Cayuga’s chief financial officer.
Cayuga currently processes approximately 1 billion pounds of milk annually, sourced from a group of 32 progressive farm-to-table farmers — each deeply passionate about animal care and sustainability. Recognizing that growth was essential to keep pace with the evolving market, Cayuga laid the groundwork for its new products facility.
“Our mission is to create long-term value for our member-farms by controlling our own destiny — investing in infrastructure, technology and partnerships that allow us to compete while staying true to our roots,” said Galindo.
To finance the new facility, Cayuga partnered with multiple financial institutions within the Farm Credit System, including CoBank and Farm Credit East.
FCL’s approach is relationship driven, not transactional, and that’s what makes the difference.
“Our financial partners helped guide our transactions every step of the way — and beyond that, they understand our equipment and processes, even discussing model types and line speeds during facility tours and coordinating with equipment vendors. You don’t get that with a commercial lender,” Galindo said.
Through CoBank’s Farm Credit Leasing subsidiary, Cayuga also secured $31 million in leasing agreements to help finance silos and processing equipment — including pasteurization and separation systems, which are central to its operations. The new facility also offers advanced processing capabilities and customized materials for customer blends.
“FCL’s approach is relationship driven, not transactional, and that’s what makes the difference. They offer tailored financial solutions that align with our long-term goals, and their expertise in agribusiness just makes them a natural fit.”
With the Eagle Drive Holdings facility set to become fully operational, Cayuga is poised to expand into new markets, further strengthening the region’s dairy economy. “Finalizing this project also means we’re adding economic value and growth into our region — ultimately creating new jobs and an increased demand for dairy cows in the Northeast. FCL’s support is a big part of that success,” Galindo said.