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California Dairies Looks to the Future with High-Tech Valley Natural Beverages Plant

Investments in advanced technologies, environmental responsibility, and employee welfare lay the groundwork for operations and benefit the company’s member-owners as it sets a new path for production.

California Dairies, Inc.'s Bakersfield facility represents a critical step in CDI’s effort to diversify product mix and capture higher-value channels.
California Dairies, Inc.'s Bakersfield facility represents a critical step in CDI’s effort to diversify product mix and capture higher-value channels.
Danny Klorman / California Dairies, Inc.

Making the call to invest in the future can be a scary proposition for many F&B manufacturers given the uncertain economic climate the past few years. It might be especially so for producers of dairy products given the incredibly tight on farm margins. But California Dairies, Inc. (CDI), owners of Valley Natural Beverages, decided not to give in to those fears and instead set out on another path. CDI gave the green light to construct one of the most advanced dairy facilities in the U.S., underscoring its strategy to diversify beyond butter and milk powder and include premium dairy beverages for the more than 250 California farmers who own the cooperative and make up its membership.

Built from the ground up on a 47-acre greenfield site in Bakersfield, Calif., the plant is the cooperative’s first greenfield project. Opened earlier this year, the Valley Natural Beverages (VNB) plant is CDI’s first facility dedicated to fluid milk and value-add liquid products. 

“This project really captures what we stand for as a co-op,” says Troy Hancock, Site Director for CDI Bakersfield. “Everything here is designed to add value for our member-owners. By processing more milk into fluid and extended shelf-life (ESL) products, we’re giving them access to a broader market and strengthening the California dairy market overall.”

The 47-acre greenfield site in Bakersfield, Calif., is the cooperative’s first new greenfield project in more than 15 years.The 47-acre greenfield site in Bakersfield, Calif., is the cooperative’s first new greenfield project in more than 15 years.Danny Klorman / California Dairies, Inc.“Historically, most of CDI’s processing went into butter and powder,” Hancock explains. “But the way milk is priced, our farmers make the most when it’s used in fluid milk. So, this facility was built to help them achieve that.”

Currently, the plant can receive 25 truckloads—about 150,000 gallons—of milk daily, with infrastructure in place to scale to 100 loads, or roughly 600,000 gallons per day. The location in California’s Central Valley ensures a strong, localized milk supply, with numerous dairy farms within a 20-mile radius.

“The proximity to supply was key,” Hancock says. “We’ve got all the milk we’ll ever need right here, and we’re close to both I-5 and Highway 99 for easy access to the ports of Los Angeles and Oakland. That’s huge for our export business.”

Fast build, future-proof design

California Dairies, Inc. purchased the Bakersfield property in June 2023 and broke ground four months later. By December 2024—just 18 months from purchase—CDI was producing sellable product.

The contractor and architect for the 200,000-sq-ft build were Big-D Construction and E.A. Bonelli + Associates, respectively. From the earliest design stages, the goal was to create a flexible and expandable site that could adapt to market demands and new products.

“The current configuration supports three packaging lines,” Hancock says. “But we’ve built the backbone—utilities, controls, piping, electrical—for significant expansion.”

The site currently operates three packaging lines, but there is room for seven more before additional construction would be needed to double that.The site currently operates three packaging lines, but there is room for seven more before additional construction would be needed to double that.Danny Klorman / California Dairies, Inc.Overhead, a full walk-on interstitial ceiling houses piping, wiring, and utilities, giving maintenance personnel easy access while keeping production floors clear. Use of an interstitial space also prevents horizontal piping runs that can collect moisture during washdowns and potentially house bacteria. Each major production area has its own localized motor control center to simplify troubleshooting and reduce downtime.

"It’s not glamorous, but details like that matter,” Hancock says. “We can expand, maintain, or service equipment without shutting down other parts of the plant.”

At full build-out, CDI’s Bakersfield facility can handle 600,000 gallons of milk per day, operate on renewable energy, recycle water onsite, and rely on high-efficiency automation to maintain top-tier product quality.

For Hancock, the project reflects both innovation and purpose. “We built this plant not just to meet today’s needs, but to prepare for what’s next,” he says. “Every pipe, every valve, every line was designed for growth. It’s a showcase of what’s possible when you align sustainability, technology, and cooperative values.”

Processing systems engineered for reliability

CDI worked closely with JCS Process & Control Systems to develop the processing architecture, which includes integrated batching, separation, inline blending, and pasteurization systems feeding filling lines—one extended-shelf-life (ESL) and two aseptic. The ESL line finishes with a packaging system from Elopak, while the aseptic lines use Tetra Pak.

“This is a fully automated system from end to end,” says Carlos Ponce, Production Supervisor at the VNB facility. “We can run multiple product types with very little operator intervention. If I want to clean a tank, it’s a one-button operation—everything runs through automated CIP [clean-in-place] cycles with real-time verification.”

Integrated batching, separation, inline blending, and pasteurization systems feed three filling lines—one extended-shelf-life (ESL) and two aseptic.Integrated batching, separation, inline blending, and pasteurization systems feed three filling lines—one extended-shelf-life (ESL) and two aseptic.Danny Klorman / California Dairies, Inc.

The plant’s CIP system consists of three independent circuits on the raw side and a separate system for pasteurized lines. Both systems are designed with reuse capability to conserve water and energy while maintaining full regulatory compliance.

The fluid processing lines utilize GEA double-seat valves with integrated control tops, allowing simultaneous product flow and cleaning in adjacent lines without the risk of cross-contamination. “That technology gives us greater throughput and flexibility,” Ponce says. “We can be cleaning one section while processing in another, which keeps uptime high.”

For quality assurance, each batch undergoes stringent microbiological testing. A dedicated onsite lab collects and incubates samples in a 90°F “hot box” to confirm sterility before release. “We test everything— from raw milk to finished product,” Ponce says. “Some samples are held for two days, others for 30. It’s all about ensuring product integrity.”

The fluid processing lines utilize double-seat valves with integrated control tops, allowing simultaneous product flow and cleaning in adjacent lines without cross-contamination risk.The fluid processing lines utilize double-seat valves with integrated control tops, allowing simultaneous product flow and cleaning in adjacent lines without cross-contamination risk.Danny Korman / California Dairies, Inc.

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