California Dairies, Inc. (CDI), the state’s largest dairy farmer-owned cooperative, has officially opened a new state-of-the-art milk processing facility—Valley Natural Beverages (VNB)—in Bakersfield, California. This marks a major milestone in CDI’s commitment to innovation, sustainability, and meeting growing demand for value-added dairy products in both domestic and global markets.
The 200,000 square-foot plant is designed to process 116,000 gallons of locally sourced milk each day. Initially, it will operate with three production lines focused on extended shelf life (ESL) and ultra-high temperature (UHT) milk beverages. Future expansion plans include growing the facility to 400,000 square feet and increasing capacity to 600,000 gallons per day through 10 to 12 production lines.
Located in Kern County, the facility reflects CDI’s investment in advanced dairy manufacturing. It features cutting-edge robotics, energy-efficient systems, renewable energy use, and waste reduction technologies. The vertically integrated design supports both environmental goals and operational efficiency.
The project has also created 90 full-time jobs with competitive wages and benefits, contributing to the region’s economic development. These roles are aligned with next-generation, Industry 4.0 manufacturing standards.
CDI celebrated the grand opening with a ribbon-cutting ceremony attended by California Lieutenant Governor Eleni Kounalakis, Agriculture Secretary Karen Ross, Kern County Supervisor David Couch, and other community and industry leaders. Their presence highlighted the significance of this development to California’s agricultural economy.
As a cooperative of nearly 300 member dairy farms, CDI produces around 17 billion pounds of milk annually—about 40% of California’s total milk supply. Its product line includes butter, fluid milk, and milk powders under well-known brands such as Challenge Butter, Danish Creamery, and DairyAmerica. These products are distributed across all 50 states and exported to more than 50 countries worldwide.
The construction of the VNB facility was supported by a network of industry partners, including Big-D Construction, Tetra Pak, E.A. Bonelli + Associates, JCS Process & Control Systems, Elopak, Mark III, Interlake Mecalux, and Dairy Conveyor.
The opening of Valley Natural Beverages is a bold step forward in CDI’s mission to provide high-quality, innovative dairy products while supporting the long-term success of its members and California’s dairy industry.
