Bongards Cooperative Announces $125 Million Perham Plant Expansion

Bongards Cooperative announced on November 19, 2025 a major expansion of its Perham processing plant that company leaders and local stakeholders expect will reshape the dairy supply chain in Otter Tail County. Valued at about $125 million, the project targets a substantial boost in the plant's daily milk handling capacity through new cheese packaging equipment and additional milk intake bays. The Perham facility is the cooperative's only site that processes raw milk, making the upgrade especially significant for regional milk producers.

Construction and installation work is already underway, with some equipment installed and future milk intake bays under construction as part of a phased build out. The work follows a pattern of incremental upgrades at the Perham site, where prior expansions have progressively increased the plant's throughput. By expanding its intake and packaging capabilities, Bongards is positioning the plant to handle larger volumes and to serve broader market channels for its cheese and other dairy products.

For area dairy farmers the expansion carries immediate and practical implications. Increased daily processing capacity should translate into more predictable demand from a nearby buyer, reducing transportation burdens and potentially lowering logistical costs for local suppliers. The project was framed as both an agricultural market development and an economic development opportunity, since a larger Perham facility supports not only milk producers but also trucking firms, packaging suppliers, equipment maintenance providers, and other ancillary businesses in the county.

Market implications extend beyond immediate logistics. A higher capacity processing plant can give cooperative members greater leverage to reach new buyers and contracts, and it can improve the cooperative's ability to scale production when national or regional demand spikes. While specific production targets were not published with the announcement, the concentrated investment underscores a strategy of expanding capacity to capture market share in cheese and related dairy segments.

From a regional economic perspective the investment represents a notable capital infusion into Otter Tail County. The construction phase and subsequent operational adjustments are expected to support local employment and business activity, though no specific job numbers were released. The expansion also reinforces the role of value added processing in keeping agricultural income within local economies, by turning raw milk into packaged products close to the farm.

Bongards Cooperative and its member farms will now navigate the next phases of construction and commissioning. As equipment comes online and the new intake bays are completed, local producers and service providers will be watching for changes in pickup schedules, contract volumes, and market access. For Otter Tail County the Perham project signals a strengthening of the regional dairy infrastructure and a concerted effort to translate raw milk into higher value products within the community.