From left, Henry Bell, President of the Chamber of Commerce; Scott Martinez, President of the Economic Development Corporation; Don Warren, Mayor of Tyler; Rick Beaman, President of Hiland Dairy; Barry Beaman, General Manager of Texas and Louisiana branches; Matt McClelland, CEO; Frank Doll, Board Member for Prairie Farms Dairy; and Texas Senator Bryan Hughes; and James Wynne, Tyler City Council District 4, throw dirt at the groundbreaking. (Katecey Harrell/ Tyler Morning Telegraph)

The Tyler City Council has approved a 10-year tax abatement agreement with Hiland Dairy to support the company’s planned expansion, which is expected to generate up to $98 million in new investment and create 30 jobs with an average annual salary of $66,000.

“We are thrilled to support Hiland Dairy’s expansion, which will not only create new jobs but will further solidify Tyler’s role as a regional hub for industry and employment,” Mayor Don Warren said Wednesday after a special-called city council meeting.

The expansion will add more than 90,000 square feet of dry and refrigerated storage, as well as production space, increasing the company’s capacity. Hiland Dairy will add eight production lines, with room for two more in the future.

The expansion aims to ease overcapacity at the Tyler facility, which currently produces one million gallons of milk per week and serves local customers, including Brookshire’s Grocery Company.

Hiland Dairy, a farmer-owned business, has been operating in Tyler since acquiring its current facility in 2017. The expansion will bring the total number of employees at the facility to 140. The project is expected to be completed in the first quarter of 2026.

The city expects the expansion to benefit the local economy by creating new opportunities for businesses and residents.