Rick Beaman, President of Hiland Dairy, tosses dirt during the groundbreaking ceremony, marking the start of construction for the expanded facility. (Katecey Harrell/ Tyler Morning Telegraph)

Tyler is raising a glass to progress as they broke ground Tuesday on a new 96,000-square-foot Hiland Dairy facility, adding on to the current plant that has been serving the community for years.

“In 2017 Hiland Dairy purchased the manufacturing facility from Brookshire Grocery Company. At that time, we committed to the community and to our customers that we would grow and not close,” said Barry Beaman, general manager of Hiland Dairy Tyler plant. “We’re doing this to be able to keep up with demand and growth in the future.”

The company is investing over $90 million in the expanded facility, which will be on the grounds of the existing facility located at 200 Fuller Ave. in Tyler. The addition is expected to begin operations in the first quarter of 2026. Initially, it will create 30 jobs, with the potential for up to 100 jobs as the facility grows and reaches its full capacity.

Hiland Dairy manufactures high quality fresh dairy products and is farmer-owned. Beaman said 97% of the raw milk processed, packaged and distributed comes from Texas. This means that every purchase of their products supports both the state of Texas and its local dairy farmers.

Mayor Don Warren said Hiland Dairy had a choice on where to expand, and he’s thrilled they chose Tyler. It’s not just a facility that produces milk; it’s also dedicated to enhancing the community

As a community partner, Hiland Dairy was approached about sponsoring the renovations at Hillside Park. Initially, the response seemed uncertain, but a few days later, Beaman called back with an offer to donate 5% of their sales to support the park improvements.

Beaman said the new facility will have increased efficiency and will greatly increase workers’ ability to produce more.

“We’re tripling our capacity,” he said.

The dairy has been a part of the community for nearly 100 years, dating back to the 1930s, said Scott Martinez, president of the Tyler Economic Development Corporation. They have been excellent community partners, serving as the title sponsor of the East Texas State Fair.

From his perspective, the expansion is a significant investment for the company. There are not many independent dairies being built like this in the country, he added.

“This represents nearly a $100 million investment in the community,” Martinez said. “It will enable them to operate much more efficiently and provide better service to their customers.”

Hiland Dairy, part of Prairie Farms, is one of the largest processors of fresh fluid dairy products in the United States. Brookshire Grocery Company is the largest customer of this facility, followed by Dutch Bros Coffee as the second largest.

Smith County has a strong cluster in food products and food services, featuring companies like Hiland Dairy, Sanderson Farms, John Soules Foods, Brookshire Grocery Company, Greenberg Smoked Turkeys and Janie’s Cakes.

This shows the county is able to provide food for people all over the country and the world, Martinez said.

“This will not just serve East Texas, but this has a statewide and even multi-state reach as far as where the products will end up,” Martinez said of the Hiland Dairy expansion.