Bongards' Creameries Breaks Ground on $135 Million Cheese Expansion

Bongards' Creameries broke ground Oct. 21 on a $135 million process cheese plant expansion in Bongards, Minnesota, a project the 118-year-old farmer-owned cooperative says will add 180 million pounds of annual production capacity for domestic and export markets.

The board of directors, composed of dairy farmers, chose to expand at the cooperative's founding site rather than relocate. "Our heritage is here; yeah, it can be a tough environment, but we believe in the workforce here," said Scott Tomes, chief revenue officer. "It's a great community with people, so our chips are on the table investing in Minnesota."

Tomes calls the Bongards site the cooperative's "mothership." The Perham, Minnesota, and Humboldt, Tennessee, plants recently completed major expansion projects of their own.

What does the expansion change?

The build adds 120,000 square feet to the Bongards facility: 50,000 square feet of production space and a 70,000-square-foot automated warehouse built for efficiency and future growth.

Perham serves as the intake and cheesemaking hub. Regional milk arrives there, and cheese ships to Bongards or Humboldt for further processing. Roughly $200 million invested at Perham in recent years lifted milk intake from about 4.5 million pounds per day to 6 million pounds per day.

Tomes said Perham currently produces enough cheese barrels to meet company needs and sell surplus to competitors. Once the new capacity comes online, Bongards can hold that cheese for its own processing. "Ultimately we'll reap those benefits here in another year by almost doubling the capacity on the processed sliced side," he said.

Demand is the driver. Global processed cheese consumption keeps rising, alongside what Tomes described as an explosion in whey production and sales.

What is the timeline?

Ceremonial shovels hit the ground Oct. 21, but actual construction starts in the fourth quarter of 2026. Commercial operations are expected to commence by early 2028.

What does it mean for member farmers?

CEO Dennis Thomas framed the investment as more than capacity. "This investment is about much more than expanding production capacity," Thomas said. "It demonstrates our commitment to remaining a world-class dairy manufacturer while strengthening the cooperative for future generations. As consumer demand evolves and global opportunities continue to expand, we are positioning Bongards to be the partner of choice for our customers and an enduring source of value for our member-owners."

Board chairman Brent Ziegler, who milks around 300 head at Ziegler Dairy in Green Isle, Minnesota, said the investments let regional dairy farmers compete. "You can't do that without the investments that we're making. You have to add value," Ziegler said.

Moving milk closer to the consumer strips out price volatility, he added. "The more that we can add value to the raw commodity of milk, we can take it closer to the consumer, we add value and we take some of that volatility out."

Employees share the upside through an extensive profit-sharing program, Ziegler said. For his own family — one son in college, one son already back on the farm — the added value creates room for the next generation. "If we wouldn't add value and received a lower price for our product, it would definitely not be an option for them," he said.

With construction starting in late 2026 and slicing capacity set to nearly double, Bongards is betting that value-added processing at home keeps its member milk checks steadier through the next demand cycle.