Somewhere in the Mid-Columbia on Monday, dairy cows were milked, as usual.
The milk was collected in tanker trucks, as usual.
Then — unusually — the trucks detoured to north Pasco, where Darigold Inc.’s massive new processing plant was waiting for its first shipment.
Darigold, the Seattle-based processing and marketing arm of the Northwest Dairy Association, confirmed it processed its first shipment of milk June 2 amid ongoing construction.
The 500,000-square-foot new butter and milk powder plant on Railroad Avenue is the largest dairy processing facility in the Northwest. It employs 200 and cost a reported $900 million, more than $300 million over the original budget.
It is one of the most significant economic development wins for the region in recent years, ranking alongside three Amazon Inc. warehouses and Local Bounti’s greenhouse operations, all in Pasco.
‘Big relief’
At full operation, Darigold will convert milk from 100 Mid-Columbia dairies into butter and powdered milk for customers around the world.
It is Darigold’s 12th plant. Its nearest neighbor is in Sunnyside, where Darigold makes various cheeses. Others are in Washington, Oregon, Idaho and Montana.
Officials say it was necessary investment in Darigold’s future, though one that came with significant engineering and financial challenges.
The Pasco plant began operating at least six months behind schedule and well above the original budget of $500 million to $600 million. In May, Capital Press, citing Darigold documents, reported milk payments were cut by 20% to 25% or $4 per hundredweight to cover costs.
Jason Vander Kooy, a second-generation Darigold farmer in Mount Vernon, is eager to see construction give way to operations.
“It will be a big relief seeing this plant be operational,” Vander Kooy told the Tri-City Herald.
Vander Kooy confirmed both the cost overruns and that Darigold reduced milk checks to him and other member farmers.
Large milk storage tanks at the new Pasco facility. Bob Brawdy/bbrawdy@tricityherald.com ‘Anchors our future’
The plant is centered around two high-efficiency, gas-fired milk dryers, billed as state-of-the-art gear.
Darigold began provrddinh milk with skimmers and other gear. The dryers will come on line and it will begin making butter in July, said Allan Huttema, a Parmak, Idaho dairy farmer who serves as president and CEO of Darigold.
Huttema declined to elaborate on costs, saying Darigold is a private business.
“We’re happy that it’s to this point. We waited a long time for this,” he told the Herald.
He called it a necessary investment in both Darigold and said it will benefit its 250 member dairies.
“It anchors our future. It allows our dairies to grow,” he added.
© 2025 Tri-City Herald (Kennewick, Wash.). Visit www.tri-cityherald.com. Distributed by Tribune Content Agency, LLC.
