Leading U.S. producer of South Asian yogurt will invest in a new facility, as well as source products from Virginia farms 

Desi Fresh Foods, a leading U.S. producer of dahi, or South Asian yogurt, and lassi, a drinkable South Asian yogurt, will invest a significant amount of money to open a new manufacturing facility to Frederick County, Va. The new facility will create 56 new jobs and allow the company to significantly increase its current production while committing to source a significant amount of dairy ingredients from local Virginia farmers. The Commonwealth successfully competed with Delaware, New Jersey, Pennsylvania and West Virginia for the project.  

“Virginia’s status as the top state for business enables opportunities like this, where we can bring in a leading food manufacturer that will support more routes to market for our dairy farmers while also strengthening the local economy and workforce,” said Gov. Glenn Youngkin. “The Commonwealth is committed to business development and the growth of our largest private industry – agriculture. Desi Fresh Foods will be an asset to the community of Frederick County and its local dairies.”  

“Virginia dairy farmers’ high-quality products will be an asset to Desi Fresh Foods’ ability to continue being a leading manufacturer of South Asian dairy products,” said Secretary of Agriculture and Forestry Matthew Lohr. “We’re pleased Desi Fresh Foods recognized the benefits of relocating their facility to Virginia, and we are proud to support this project and its 56 new jobs with the Governor’s Agriculture and Forestry Industries Development Fund.” 

“After an exhaustive search, we are thrilled to be opening our new facility in Northern Virginia,” said CEO of Desi Fresh Foods Larry LaPorta. “This move will not only allow us to streamline operations and increase production, but give us access to quality, essential ingredients that will help foster the growth of Desi Fresh Foods in the future and set us up for long-term success.” 

“We appreciate Desi Fresh Foods’ decision to locate its operations in Frederick County, as well as its commitment to supporting Virginia dairies,” said chairman of the Frederick County Board of Supervisors Josh Ludwig. “Their presence enhances our local food economy, which encompasses farms, agribusinesses, suppliers, and our second-largest manufacturing sector—food manufacturing. We are excited about their future success in our community.” 

“As a lifelong Virginia dairy farmer, I’m delighted Desi Fresh Foods is opening a new facility in Frederick County,” said Senator Timmy French. “The agricultural industry welcomes this opportunity and values the investment it brings to Virginia and the local economy.” 

“We are so pleased to hear that Desi Fresh Foods is relocating to Frederick County,” said Delegate William D. Wiley. “This is exactly the type of industry that we are targeting and they will complement the existing dairy industry that we embrace.”  

Founded in 2000, Desi Fresh Foods is a New York-based manufacturer of Indian-style spoonable and drinkable yogurt products that are distributed nationwide to retailers and food service customers. The company is the leading producer of dahi (a South Asian yogurt) and lassi (a drinkable South Asian yogurt) in the United States. Desi Fresh Foods’ product line includes whole milk, low-fat, fat-free, and organic yogurt and lower-fat paneer and lassi, sold through ethnic and mainstream retailers, and food service customers. 

The Virginia Economic Development Partnership and the Virginia Department of Agriculture and Consumer Services worked with the Frederick County Economic Development Authority to secure the project for Virginia. Governor Youngkin approved a $150,000 grant from the Commonwealth’s Opportunity Fund and a $150,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund to assist Frederick County with this project.  

Support for Desi Fresh Foods’ job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation. 

Dairy Producers in Virginia Reminded to Enroll in 2024 Dairy Margin Coverage by April 29  

The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll by April 29, 2024, for 2024 Dairy Margin Coverage (DMC), an important safety net program that helps offset milk and feed price differences. This year’s DMC signup began Feb. 28, 2024, and payments, retroactive to January, began in March 2024. So far, DMC payments triggered in January and February of 2024 at margins of $8.48 and $9.44 respectively.   

2024 DMC Coverage and Premium Fees   

FSA revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage.

For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation’s current production.  

For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.    

For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.        

DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.    

Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program. DMC is also authorized through calendar year 2024. 

DMC Payments   

DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses.  These updated feed calculations use 100% premium alfalfa hay.    

More Information  

DMC is a voluntary risk management program providing protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.  In 2023, DMC payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for DMC or its predecessor Margin Protection Program. 

USDA also offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of milk minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information.   

For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.