Milk and Greek Yogurt Essay

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Competitive Advantages for Location of a Greek Yogurt Production Facility in the Greater Ogdensburg, NY Area

DCG Corplan Consulting LLC
Location and Development
Advisory Services

December 2012

Competitive Advantages for Location of a Greek Yogurt Production Facility in the Greater Ogdensburg, NY Area
_________________________________________________________________________________

Table of Contents
Key Findings ............................................................................ 1
Introduction ............................................................................. 2
U.S. Greek Yogurt Consumption................................................. 3
Canadian Market Potential......................................................... 4
Greek Yogurt Production in NY State .......................................... 5
Production Facility Requirements ..............................................10
Ogdensburg’s Competitive Advantages ......................................13
Overall Advantages of St. Lawrence County ...............................14
Specific Advantages for an Ogdensburg Plant Location........14
Summary of Financial Incentives .......................................19
Contact Information.................................................................21

_________________________________________________________________________________
DCG Corplan Consulting LLC

Competitive Advantages for Location of a Greek Yogurt Production Facility in the Greater Ogdensburg, NY Area
_________________________________________________________________________________

Key Findings


Greek yogurt is a $6 billion industry in the US.



Greek-style yogurt represents 19% of the overall yogurt market.



Canadians consume 33% more yogurt per capita than Americans.



NY State produces 70% of the total
US Greek yogurt market.



Greek yogurt requires more than 3 times the amount of fluid milk than traditional yogurt.



Demand for Greek yogurt production in New York State is expected to require 15% additional dairy and manufacturing capacity.



A typical NY State 180,000 sq. ft. Greek yogurt plant would employ
130 persons, requiring 1.408 billion pounds of fluid milk and producing 269 million pounds of yogurt per year.



The Capital/North Country area of New York State would generate the highest annual operating profit for a new 130-person Greek yogurt plant.



St. Lawrence County is the largest county in New York State, and is currently 3rd in fluid milk production, with the possibility of becoming the State’s leading milk producing county.



The City of Ogdensburg is the business center of St. Lawrence
County and can reach the Canadian market more efficiently than any other US city.



A total of $9.6 million in overall incentives offered over a ten year period are available for a prospective manufacturer.



A Greek yogurt plant in Ogdensburg, NY could generate an operating profit of 7.37%, nearly 30% higher than the leading production areas in NY State.

_________________________________________________________________________________
DCG Corplan Consulting LLC

1

Competitive Advantages for Location of a Greek Yogurt Production Facility in the Greater Ogdensburg, NY Area
_________________________________________________________________________________

Introduction
The Greek yogurt phenomenon represents a major growth opportunity for New York State, especially for areas with significant fluid milk production and milk cow grazing acreage potential. As competition for market share among the leading Greek yogurt manufacturers heats up, opportunities for expansion in established locations is often compounded by land use restrictions or excessive real estate costs.
Limitations may occur, therefore, on dairies and production facilities attempting to meet increased demand. Chobani, the recognized leader in the industry, is already seeking locations outside of New York State for new Greek yogurt production
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