Select Milk Producers, the US dairy co-op, is to convert a denim mill in Texas into a dairy plant.
The company is to turn the site into a processing plant. The facility will create 135 jobs.
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Sid Miller, agriculture commissioner in the Texas state government, said: "The key to ensuring our agriculture industries and rural communities continue to succeed is innovation," Miller said. "That’s exactly what these dairy farmers are doing, and it’s to the benefit of rural Texas economies. Rather than hauling locally produced raw milk to faraway places, Select Milk Producers is keeping it local."