November 18, 2024

Greek Yogurt a Boon for New York State

“It’s an indulgent texture, but it’s also guilt-free,” said David J. Browne, a senior analyst for Mintel International Group, a consumer research firm.

Greek yogurt has certainly been healthy for the economy in New York. Two of the leading brands, Chobani and Fage, have their main production plants in upstate New York and are expanding their operations.

Alpina Foods, the United States arm of a major South American dairy company, is building a $20 million plant in Batavia to make Greek yogurt topped with granola. And state economic development officials are said to be negotiating with another major food maker to set up a dairy products plant in the same area, creating the possibility for what one executive called a “yogurt cluster.”

Often twice as expensive as regular yogurt, Greek yogurt has most of the water and whey strained out, making it richer in protein and giving it the density of sour cream.

National retail sales of the thicker style of yogurt more than doubled last year, jumping to $821 million for a 52-week period ending in October, excluding Walmart stores, according to Mintel. The research firm projects that the strong sales growth will most likely continue this year.

New York’s dairy farmers are among the biggest beneficiaries of the public’s love affair with Greek yogurt, because it takes much more milk to make Greek yogurt than regular yogurt. “This is a ‘once every two or three generations’ situation,” said Bruce Krupke, executive vice president of the Northeast Dairy Foods Association. “All of the right forces have come together to make it very attractive to build in New York state.”

Data compiled by the New York State Department of Agriculture and Markets shows that the state produced 368 million pounds of yogurt in 2010, nearly 40 percent more than the previous year. Over five years, production rose almost 60 percent. Much of that increase is for Greek yogurt production.

And the growth is continuing. Through a combination of new plants and expansions, within a few years, the state could produce twice as much yogurt as it made in 2010.

“We’re literally building as we speak to keep up with demand,” said Russell B. Evans, Fage’s director of United States marketing.

Fage, based in Greece, is credited with introducing many Americans to Greek yogurt and thereby starting the boom. The company chose to open its plant in Johnstown, N.Y., in 2008 partly because it was close to New York City, where a large community of people of Greek descent made a ready market familiar with their product. But the appeal turned out to be much broader.

The Johnstown plant had an initial capacity of 26 million pounds a year and last year produced 123 million pounds. Its planned expansion, which is expected to take about two years, would allow the company to make up to 352 million pounds a year.

AgroFarma, founded by a Turkish immigrant, began making Greek-style yogurt under the Chobani brand name four years ago at a former Kraft Foods plant in South Edmeston, N.Y. Now the leading American maker of Greek yogurt, the company currently takes in about three million pounds of milk a day, from which it makes a million pounds of yogurt. When the current phase of expansion is done in the spring, the plant’s capacity will increase by about a third, said Mikael B. Pedersen, the chief operating officer of AgroFarma. (Chobani also recently announced plans to build a $128 million plant in Idaho, to better supply markets across the country.)

The Greek yogurt boom has translated into jobs in rural areas of New York that badly need them. Chobani said it currently employed about 900 people in New York and expected to add about 100 more. Fage said it had about 240 full-time employees and expected to add about 150. The new Alpina plant in Batavia will employ about 50 people.

This article has been revised to reflect the following correction:

Correction: January 12, 2012

An earlier version of this article misstated the initial, current and expected capacity of the Johnstown yogurt plant. Its initial capacity was 26 million pounds (not 24 million pounds), which rose to 123 million pounds last year (not 104 million pounds currently) and its expansion will allow it to make 352 million pounds a year (not 160 million pounds).

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Murdochs’ Infighting Clouds Future of News Corp.

But behind that facade, the disclosure of widespread phone hacking at News Corporation’s British newspaper division was only the latest and most serious episode to test a father-son relationship that has frayed over the last few years, leaving both men at times not even on speaking terms. And that rift, which has been known only to those closest to the company, has opened up a question central to Rupert Murdoch’s legacy — can one of his children ever take the helm of his $62 billion media giant?

Their disagreements, which were described in detail by more than half a dozen former and current company officials and others close to the Murdochs, stemmed in large part from the clashing visions of a young technocratic student of modern management and a traditionalist who rules by instinct and conviction. The tension grew worse as the gap between the New York headquarters and James’s London operations, where he oversees the company’s European and Asian holdings, proved difficult to bridge.

The elder Mr. Murdoch reached his boiling point last winter, said one of the former officials, and delivered a blunt ultimatum to his son.

“You’re coming back to New York, or you’re out.”

The son consented. But now, as investors place more pressure on the Murdochs to disentangle themselves from the company they have tightly controlled for three generations, his role in the company is under threat. Shareholders will meet on Friday in Los Angeles to decide whether to re-elect the News Corporation board, which includes Rupert, James and Lachlan Murdoch, the eldest son. Though the family holds a 40 percent stake, giving the Murdochs effective control, and most analysts expect them to be re-elected, several large shareholders and a prominent investor advisory firm have recommended voting against them.

James Murdoch, 38, who approved a settlement in 2008 of more than $1 million to help resolve allegations of voice mail hacking at News of the World, the tabloid that News Corporation shut down in July, faces additional pressure back home in London. He is scheduled to testify before Parliament for a second time next month to address questions about the payment, with several ministers suggesting that it was part of an intentional cover-up of the phone hacking.

Within the company, James’s position became tenuous enough at one point this summer that he and other senior executives considered whether he should step aside, said one person with knowledge of the conversations.

Both Murdochs, through representatives, declined interview requests.

Rupert Murdoch, now 80, has long said he hopes one of his children will eventually run the company he built from an Australian newspaper franchise into one of the world’s most powerful and profitable media empires. With his daughter Elisabeth focused on her television production company in London, and Lachlan determined to continue running his media business in Sydney despite the elder Murdoch’s desire to bring him back into the company, James has been the heir apparent. But the hacking scandal and the simmering animosity with his father have destabilized his once inexorable ascent within the company.

“Rupert always thought of News Corp. as a family company because it had been given to him,” said Barry Diller, who helped the elder Mr. Murdoch build Fox into a formidable rival to the traditional networks. “It had been given to him through a tiny newspaper in Adelaide, but nevertheless it was his father’s company. I think that meant to him that tradition should continue. If, as he’s always said, his children were worthwhile.”

Succession Twist

James was not always viewed as the Murdoch who would end up running News Corporation. That mantle, it seemed to everyone inside the company, belonged to Lachlan. James, the youngest of Rupert’s four adult children, was a willful child. When he was served last at dinner, as was the family custom for the last born, James strenuously objected and, according to the Murdoch biographer Neil Chenoweth, repeatedly tried to rearrange the seats around the table.

He attended Harvard, but in 1994 dropped out to start a hip-hop record label, Rawkus, which News Corporation bought two years later.

Bill Carter contributed reporting.

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