Chinese company, Dairy Farmers of America planning $100 million dairy farm in Kansas

Markets Associated Press

A Chinese company and the Dairy Farmers of America say they are planning a $100 million plant in Kansas.

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The Dairy Farmers of America, a cooperative owned by 13,000 dairy farmers based, is based in Kansas City. It is working with the Inner Mongolia Yili Industrial Group. The two groups formed a partnership two years ago.

The Kansas City Star reports (http://bit.ly/1qSfeCv ) that the plant's location has not been disclosed but that it will likely be in western Kansas, where most of the state's milk production occurs.

The plant will produce up to 88,000 tons of milk powder a year.

Rick Smith, president and CEO of Dairy Farmers of America, said Yili is a fitting partner because it is a leading Chinese dairy processor.

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Information from: The Kansas City Star, http://www.kcstar.com