Contact: Laura Smith, Office of the Governor, 608-261-2162
MERRILL – Governor Jim Doyle today announced that Lactalis American Group, Inc. will receive $57,229 in Dairy Manufacturing Facility Investment Tax Credits for its $2.7 million plant modernization project. Governor Doyle made the announcement at Lactalis’ Merrill facility, as part of his eighth annual “Up North” Tour.
“Agriculture and dairy are the backbone of Wisconsin’s economy – contributing more than 10 percent of the jobs in Wisconsin and about $59 billion to our economy every year,” Governor Doyle said. “The Dairy Manufacturing Facility Investment Tax Credits we are announcing today are helping Lactalis stay competitive on the global market, so that it can continue to thrive and support jobs here in Wisconsin.”
Lactalis American Group, Inc., which maintains Wisconsin facilities in Belmont and Merrill, is the North American division of Groupe Lactalis, the world’s second-largest dairy corporation. The company is completing a number of capital projects at both Belmont and Merrill to improve manufacturing efficiency, reduce product losses, increase production volume, and modernize the facilities. The company will add a production line in Merrill. The $2.7 million project will help retain 274 jobs in Northern Wisconsin.
The Dairy Manufacturing Facility Investment Credit, facilitated by the Department of Commerce, rewards companies for up to 10 percent of the amount paid in the taxable year for dairy manufacturing modernization or expansion investments. Lactalis is one of the 20 dairy manufacturing facilities and three cooperatives that are receiving Dairy Manufacturing Facility tax credits this year. Together, they have invested $46.6 million and created close to 70 jobs.
Since the Dairy Manufacturing Facility Investment Tax Credits program began, the state has provided $2.6 million in tax credits to leverage over $140 million in capital investment at 36 dairy manufacturing facilities and 3 cooperatives around the state, helping to create over 350 jobs.
Under Governor Doyle’s leadership, Wisconsin has invested and promoted its diverse agricultural economy, which has now grown to approximately $59 billion annually and is responsible for more than 1 in 10 jobs in Wisconsin. Incentives to help modernize the dairy industry have helped increase milk production to record levels and have strengthened the state’s status as the number one producer of cheese in the country. In addition, Wisconsin is second in the nation in the number of organic farms.
At the same time, efforts to strengthen diversity in agriculture have made Wisconsin a leading producer of cranberries, specialty cheeses, organic vegetables and many other products. To enable successful farming for future generations, the state’s best farmland is protected under the Working Lands Initiative that Governor Doyle signed into law in 2009.
Earlier this year, Governor Doyle signed into law several bills to create jobs and support investment in the state’s agricultural industries. These bills created a food processing tax credit to create investment opportunities for Wisconsin food processing and distribution businesses; extended the dairy modernization tax credits through 2012 to help hard-pressed dairy farmers invest in their operations; and created a Farm to School program to help more Wisconsin schools have easier access to locally grown fruits and vegetables.
