Iowa board awards millions in incentives for construction of Daisy dairy plant in Boone

A national dairy brand will get more than $67 million in state and local incentives to build a manufacturing facility in Boone.

The Iowa Economic Development Authority voted Friday to approve an $18.2 million package for the Daisy plant. With $49 million in other aid already approved, the total public investment comes to $67.2 million.

A leading sour cream, cottage cheese and dip maker, Daisy plans to build its 750,000 square foot manufacturing facility in Boone’s industrial park, bringing 255 new jobs to the city.

IEDA documents show construction is expected to be completed sometime in 2027 and equipment installation in 2029. The company will invest $627 million in the project.

The more than 100-year-old, family-owned company is based in Dallas and has manufacturing facilities in Garland, Texas; Casa Grande, Arizona; and Wooster, Ohio. It holds over 50% of the market share in retail sales of sour cream and is the largest brand of cottage cheese in the country, according to the its website.

The IEDA documents note that Daisy products compete with other dairy manufacturers in Iowa, including Des Moines-based Anderson Erickson and a plant in Le Mars owned by Kemps, a St. Paul, Minnesota-based subsidiary of the Dairy Farmers of America.

State and local incentives for Daisy plant to total more than $67 million

The economic development board's package for Daisy consists of a $7 million forgivable loan, a $1 million investment tax credit and $10.2 million sales and use tax refund. In addition, the company will receive a $49 million local property tax exemption through the state's High Quality Jobs Program, bringing the total value of state local benefits to $67.2 million,

In order to qualify for the incentives, the company will have to create at least 55 jobs paying 120% of the local average wage, or $28.85 an hour. IEDA documents also show the company will have to provide employees at least 70% of single coverage medical premiums and at least 60% of family coverage.

"This project will be immensely beneficial to not only the city of Boone, but also Boone County and the entire central Iowa region. I am incredibly excited for the positive economic impact this project will bring and the continued success of Daisy brands and their impeccable line of dairy products," Boone Mayor Elijah Stines told the Des Moines Register earlier this week when the City Council considered and approved its portion of the incentive package.

The news comes after the Fareway supermarket chain announced in August it will move its headquarters from Boone to Johnston, shifting about 100 jobs.

This article originally appeared on Des Moines Register: Planned Boone plant for Daisy to get millions in Iowa incentives