An expanding dairy plant is a lifeline for farmers, but its growth creates a multi-million-dollar infrastructure challenge for its city.
A critical meeting in Norfolk, Nebraska, recently brought together key leaders from the city, county, and U.S. Congress to address a growing issue at the heart of the region’s agribusiness: the expansion of the Actus Nutrition dairy plant. The plant, formerly known as Milk Specialties Global, has become a lifeline for local producers, with some farmers stating that its presence is the sole reason their operations are still viable. However, its rapid growth has outpaced the city’s infrastructure, creating a tense standoff over wastewater and odor issues.
The article details the immense value the plant brings to the local dairy economics. Farmers like Walter Aschoff, who saw competition dwindling, and Mike Guenther, who was considering an “exit strategy” from the industry, credit Actus with saving their farms. The plant offers a better price for milk and has saved producers money on transportation, as they no longer have to ship their product over 100 miles. This new market is particularly crucial for a state that has seen its number of dairy farms drop dramatically from 650 in 1999 to only 73 today.
On the other hand, the plant’s expansion has caused significant friction with city officials and residents. The article highlights that the facility has violated its wastewater treatment agreement with the city nearly 300 times since its expansion, frequently exceeding its permitted levels for biochemical oxygen demand (BOD). These violations have not only strained city resources but have also led to strong odors that have bothered nearby residents. As a result, the plant is currently operating at only roughly two-thirds of its capacity, preventing it from meeting its full contractual obligations.
The solution to this conflict comes with a steep price tag. According to a key piece of data journalism, city officials estimate that upgrading the city’s wastewater treatment plant to accommodate Actus’s growth would cost $40 million to $50 million in the long term, with a shorter-term pre-treatment site costing more than $30 million. U.S. Rep. Mike Flood is working to secure up to $85 million in federal funding from sources like USDA grants and WIFIA funds, highlighting that the plant’s success benefits communities well beyond Norfolk.
Ultimately, the meeting was a powerful display of collaboration, with all parties committed to finding a solution. Actus representatives expressed their desire to be a “good community partner” and stay in the area for the long term. By working together to secure the necessary infrastructure upgrades, leaders hope to resolve the immediate conflict and lay the groundwork for a prosperous future for the region’s dairy industry and the entire food supply chain.
Source: Norfolk Daily News, “Area leaders discuss how to expand Norfolk dairy plant’s operations while meeting city’s needs”
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