More milk is good for the state’s economic health, officials say

That glass of Michigan milk will be full to the brim, thanks to an expansion of a Michigan Milk Producers Association (MMPA) processing plant in Ovid. And more milk could be healthy for the state’s economy, officials say.

Gov. Jennifer M. Granholm joined state and local officials this past week to kick off the expansion. The project got the green light last month after the Michigan Strategic Fund Board approved an Agricultural Processing Renaissance Zone designation. Officials say it will generate private investment of $35 million and create 510 jobs, including retaining the 86 current full-time positions and adding 10 new positions directly to the Clinton County plant at Ovid, located between Lansing and Saginaw.

Granholm sees the farm sector as providing hope for a state with major economic woes.

“Michigan’s food and agriculture industry plays a key role in helping to diversify and grow our state’s economy,” said Granholm.”Agricultural Processing Renaissance Zones are enhancing this important sector by attracting new investment and creating jobs in communities across the state.”

Continued -Agricultural Processing Renaissance Zones are geographical areas designated as tax-free for eligible agricultural processing companies that plan to build a new facility or significantly improve an existing facility within the zone.

Ken Nobis, MMPA president, said the dairy industry contributes over $5 billion to the state economy and that expanding the Ovid plant will increase that contribution.

In 2006, MMPA contacted the Michigan Department of Agriculture (MDA) to help facilitate an expansion at the Ovid plant. Working with the Michigan Department of Transportation, MMPA entered a purchase and rental agreement rerouting a rail-to-trail corridor and paving the way for the expansion. The agreement has led to a 41-mile Rails to Trails corridor that will connect 16 local communities in Clinton, Ionia and Shiawassee counties, which officials say will bring new recreational and tourism activities and spur economic growth and new business.

“This type of homegrown investment is a shining example of the state’s agribusiness sector investing in Michigan through capital investment and job creation,” said Michigan Department of Agriculture Director Don Koivisto. “This expansion underscores the tremendous partnership between government and private business.”

“The combination of an innovative economic development tool and strong state-local collaboration was key to securing this expansion,” said Michigan Economic Development Corporation (MEDC) President and CEO James C. Epolito.

Michigan’s Renaissance Zone program is administered by the MEDC, which is a partnership between the state and local communities promoting economic growth by developing strategies and providing services intended to create and retain good jobs and a high quality of life.

For more information on MEDC initiatives and programs, visit the Web site at www.TheMEDC.org.  For more information on MMPA, please visit www.mimilk.com.

Photo: ‘just milk’, by Pedro Moura Pinheiro at Flickr.com.