US co-op Dairy Farmers of America has broken ground on a new plant in Michigan that will produce ingredients.

The site in Cass City will manufacture whole and skim milk, as well as cream. The plant, which will cost US$40m, is expected to be completed next autumn. AT least 25 full-time jobs will be created, the co-op said.

“This plant will provide a local home for our members’ milk, answering the growing need for Michigan plant capacity while building a base for value-added processing in the future,” said Mark Korsmeyer, executive vice president of DFA.

A spokesperson said the co-op had yet to decide which value-added products could be manufactured at the plant.

“We’re still exploring options to identify the business model that makes the most sense for our farmer owners,” she said.