Minnesota Cheese Plant Expansion Adds 180M Pounds Capacity
Dairy farmers and processors in the region should plan for a larger milk outlet as the $135 million Bongards project comes online.
Updated on Nov. 2, 2026 in Agriculture
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Bongards' Creameries broke ground on a $135 million process cheese plant expansion in Bongards, Minnesota, on Oct. 21. The project adds 120,000 square feet of production and warehouse space and is expected to raise annual production capacity by 180 million pounds.
Why it matters
The expansion is meant to keep pace with rising global processed cheese consumption and growing whey production and sales, and it gives dairy suppliers a larger, more stable outlet for raw milk. Board chairman Brent Ziegler said the investments add value to raw milk, which he framed as adding stability for dairy farmers.
The $135 million expansion adds 120,000 square feet, including 50,000 square feet of production space and a 70,000-square-foot automated warehouse. Perham milk intake rose from about 4.5 million to 6 million pounds per day, and the project is projected to add 180 million pounds of annual capacity.
The players
Bongards' Creameries
A dairy cooperative founded in 1908 that runs cheese processing plants in Minnesota and Tennessee and supplies processed cheese to other manufacturers.
Brent Ziegler
Board chairman of Bongards' Creameries, who has publicly tied the company's plant investments to stability for dairy farmers.
The details
Milk from across the region is delivered to the Perham, Minnesota, plant, where cheese is made into barrels and shipped for further processing in Bongards or Humboldt, Tennessee. The Perham plant currently produces enough cheese barrels to meet the company's own needs and sell to competitors, and the expansion is designed to add processing capacity on top of that model. Groundbreaking work is expected to begin in the fourth quarter of 2026, with commercial operations projected to start by early 2028.
Timeline
The Bongards' Creameries cooperative was founded in 1908.
The groundbreaking ceremony was held on Oct. 21, 2026.
Actual groundbreaking work is expected to start in the fourth quarter of 2026.
Commercial operations are expected to commence by early 2028.
Market Landscape
The project builds on Bongards' Creameries' established Perham operation, which already supplies cheese barrels to the cooperative's own plants and to competitors. It is positioned around rising global demand for processed cheese and whey rather than around a new product line.
Dairy farmers supplying the Perham plant should watch for how the added 180 million pounds of annual capacity affects milk demand and intake over the coming years. Dairy processors and cheese buyers should factor in a larger regional supply base as the expansion comes online.
The takeaway
Dairy operators should treat this expansion as a signal that processed cheese and whey demand is driving capacity investment in the upper Midwest. Track milk intake and contract terms in the region over the next 18 months, as the project's early 2028 start date will shape supply conditions well before it opens.
What happens next
Groundbreaking work is expected to start in the fourth quarter of 2026, and commercial operations are projected to commence by early 2028.
Further reading
For more on how dairy processing investments like this fit into the wider farm economy, explore the Agriculture section.
Source note: This article includes information reported by Agweek.
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