Seward County $186M Milk Processing Plant Looks to ‘Level Up’ Nebraska Dairy Industry

By Cindy Gonzalez

SEWARD, Nebraska — A 300-acre regional industrial campus a half hour west of the state capital is adding another major piece: a $186 million milk processing facility that is projected to employ about 70 workers.

And it’s not your stereotypical dairy operation.

Dari Processing, a fourth-generation company run by the family that owns Tuls Dairies of Rising City, in eastern Nebraska, expects eventually to haul in 1.8 million pounds of cow milk daily. The 240,000-square-foot facility will then process and package shelf-stable milk, which needs no refrigeration.

Popular in places such as Europe and New Zealand and starting to catch on in the U.S., the aseptic milk can stay on the shelf for up to a year until opened. That’s possible through ultra-high-temperature pasteurization, and a sterile packaging process to take place at the site.

Among key products to be distributed nationally and perhaps worldwide are Dari’s Moo’v, a high-protein, lactose-free milk that comes in multiple flavors and kid-friendly packaging. 

T.J. Tuls, at a groundbreaking event Wednesday, said that since he was a kid, he wanted to be a pilot or follow his dad, Todd, into the dairy farm business. But he said he knew the dairy industry had to evolve and modernize, and the new plant venture rising on nearly 40 acres will provide room for ideas and products to grow.

“We’re looking to level up dairy,” he said. 

Aging Dairy Processing Plants

Tuls, his dad, his son, and other family members were joined by Nebraska Gov. Jim Pillen, Seward Mayor Josh Eickmeier, and other business and dairy leaders for the groundbreaking of the Dari facility at the Seward Rail Park.

The still-developing industrial park serving the Seward and Lincoln region is attractive for its proximity to I-80, the BNSF railroad main line, an airport, and a regional workforce pool that includes the city of Lincoln. 

Tuls, during a YouTube interview, said another state also had been in the running, but Nebraska “wanted it significantly more” than the other.

Public funds boosting the Dari project include: $1 million in state-administered federal community development block grants, to be matched by the city of Seward; $8.6 million in tax increment financing approved by the city of Seward; and nearly $600,000 for infrastructure from a federal department of transportation economic opportunity program. The state also is helping fund extending a main boulevard, and sewer and water extensions to support the new plant.

Jonathan Jank, president and CEO of the Seward County Chamber & Development Partnership, said numerous partners helped secure the project. He said the last dairy processing plant built new in Nebraska was some six decades ago — in 1963.

“Today represents a generationally transformational project for our state’s dairy industry,” Jank said.

Not ‘Almond Nut Juice’

Pillen, noting his friendship with Todd Tuls goes back 25 years, said 95% of agriculture in Nebraska is family owned, and that he wants to see more family-owned brands in the state.

“I’ve seen enough Dollar Generals in this state to sink a ship,” he said. “No disrespect to publicly traded companies, but we should be doing business with the family-owned businesses [that] are the stakeholders in our communities across the state. It’s who we are.”

He called the planned Dari operation — projected to open in 2027 — a “big deal for Seward, the state of Nebraska and every family-owned ag business.”

Pillen, in an interview with Nebraska Examiner, referred to his disdain for products he says masquerade as milk — things such as “almond nut juice.” He said the Dari processing plant should boost other dairy operations in the state. The plant, for example, is to process milk from cows on area farms.

“Milk, just for the record, comes from cows, not from nuts,” he said, adding that the Dari operation “is focused on value-added agriculture.” 

Reduce Fuel, Energy Use

Tuls told the group that Nebraska is a great state in which to milk cows, and that his family has been doing that for four generations. 

But as milk plants have aged and operations slow, milk is shipped farther away for processing.

“Adding new processing capacity helps ensure that we can continue our family’s legacy of milking cows here in Nebraska,” Tuls said. He projected that the plant would help keep 30% of the state’s milk production from being processed elsewhere and create more local jobs.

“By keeping Nebraska milk in Nebraska, we’ll reduce the amount of miles that trucks haul raw milk, reduce fuel usage, and reduce our overall carbon footprint,” Tuls said.

He said the processing techniques at the state-of-the-art facility should give milk products a longer shelf life and eliminate the need for cooling before opening — also helping to reduce the energy needed. 

“It’s the future of milk,” he said. 

Longer shelf life also opens more opportunities to ship finished projects domestically and globally, Tuls said, adding that the facility would be one of the few nationally that combines aseptic packaging and ultrafiltration. 

“Ultrafiltration helps concentrate proteins and remove some of the lactose and sugars from milk, making it even healthier for you,” he said.

‘Ducks in a Row’

Jank said the Dari project helps close the gap needed to wrap up the first phase of the industrial park, which dates back about 15 years, when planning began. Streets, power, other infrastructure and environmental concerns were addressed in advance to create such shovel-ready sites ready to build on.

The first major business came around 2020, he said, with the opening of Petsource by Scoular’s $50 million freeze-dried pet food ingredient manufacturing facility. It has expanded since.

Other tenants include: WCR Inc., which builds and services heat exchangers; Levander’s Body Shop; and Plum Creek Seed Services. A Parker Baby facility also is to break ground this summer. 

Jank said he took on his current role 13 years ago and grabbed the baton to help recruit business and development for the industrial park area. 

“Nebraska really can’t grow without those sort of shovel-ready sites,” Jank said. “Businesses aren’t going to sit around and wait for communities to get their ducks in a row.”

The Nebraska Examiner is an affiliate of States Newsroom, the nation’s largest state-focused nonprofit news organization, supported by grants and donations. The Examiner retains full editorial independence.