Byrne Dairy's Ultra plant to get a planned upgrade

DeWITT - When Byrne Dairy, Inc. constructed its Ultra Dairy LLC facility in 2003, company officials designed a building that would be easy to add to when the division needed additional production space.

Four years later, Ultra Dairy LLC, which operates a 42,000-square-foot ultra-pasteurization facility, produces 3,200 gallons of extended shelf-life dairy products an hour. That's a rate that Nicholas J. Marsella, senior vice president and vice president of production, says no longer meets the demand of its customer base.

"We have to meet customer capacity," Marsella says. "Our production is four times greater than what our initial production started at in 2002."

Much of the growth has come from beyond New York's borders. Between 80 percent and 90 percent of Ultra Dairy's milk and cream products are shipped out of state. The products are produced under some labels including: Byrne Dairy, Inc., Organic Valley Family of Farms, Sealtest, and Great Value, a brand created, by Wal-Mart Stores, Inc.

In 2007, Ultra Dairy generated about $57 million in sales. Marsella couldn't provide sales projections for 2008, but expects continued strong growth.

Byrne Dairy is planning to spend nearly 59.5 million to add 55,000 square feet to the existing facility based at 6750 Benedict Road in DeWitt. The expansion will provide more processing and packing space.

"Right now our processing systems can produce 3,200 gallons an hour and we're going to add an additional 5,000 gallons [to that rate]," Marsella says. "Our goal is to have this operational by October."

The ultra-dairy division produces extended shelf-life products that last 60 to 90 days. Fresh dairy usually lasts 18 to 20 days, Marsella says.

The expansion also creates the need for 70 more employees. Marsella says Ultra Dairy will hire the new workers over the next three years. The Ultra Dairy plant started with a staff of 17 in 2004, which has grown to 91 currently.

Architect Webber/Smith Associates Inc., a Lancaster, Pa. firm specializing in the food industry, and general contractor, The Hayner Hoyt Corp. of Syracuse, already completed design plans and expect to break ground on the addition during the week of May 19 to May 23.

The almost $9.5 million project cost includes $8.8 million for building construction, over $500,000 for site work, and nearly $85,000 for other project-related costs.

Byrne Dairy is financing the project through a local bank, but Marsella declined to disclose further financial information. The company is also requesting a sales and use-tax exemption and a mortgage-recording tax reduction through the Onondaga County Industrial Development Agency (OCIDA).

In 2009, Byrne Dairy also plans to spend between $10 million and $11 million on new equipment, Marsella says.

Byrne Dairy started in 1933 and is based at 240 Oneida St. in Syracuse. Ultra-pasteurization products last longer than fresh-dairy products because they are produced at higher temperatures. Fresh dairy is produced at 172 degrees (Fahrenheit) while extended shelf-life dairy is produced at 285 degrees, Marsella says.

Copyright Central New York Business Journal May 16, 2008
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