Big Bet on Automation Shakes Up US Dairy

Lactalis pours more than US$75 million into two NY plants, signaling faster and smarter dairy production by 2027

17 Nov 2025

A wave of investment is washing through America’s dairy industry. Lactalis, the world’s biggest dairy group, plans to spend more than $75m upgrading two plants in New York. The outlay signals how rising costs, tight labour markets and expectations of uniform quality are pushing processors toward heavier use of machines.

At the Walton and Buffalo sites the firm is fitting new cheese vats, automated belts and robots to ease production bottlenecks. Walton’s output could rise by about 30% once the work is done. Buffalo may add some 37m pounds of cheese a year. Both plants are due for completion in 2027, making this a rare, multi-year overhaul in a sector often slow to modernise.

Analysts see more than routine tinkering. The goal is to build operations that are steadier and cheaper to run, while keeping pace with demand for cheese and other dairy goods. Automation promises fewer errors, less waste and stronger food-safety checks. Groups such as the International Dairy Foods Association argue that such upgrades usually bring “stronger market performance and greater operational stability.”

The push fits a broader shift. Data systems increasingly guide plant managers; energy-efficient equipment trims utility bills. Yet the gains may not fall evenly. Large processors can invest freely, widening the gap with small producers. Some experts warn that rapid modernisation could make survival harder for family-owned plants. Others counter that as tools become cheaper, smaller firms will have a chance to follow.

For now, Lactalis’s move offers a glimpse of the industry’s direction. If other processors follow its lead, America’s dairy output may become quicker, cleaner and more predictable, though only after the machinery is finally switched on in 2027.