KANSAS CITY — Dairy Farmers of America has entered into an agreement with Craigs Station Ventures, an investor group comprised of eight farmer investors, to build a cold milk separation plant in York, N.Y. The dairy cooperative said construction will cost an estimated $12 million and that the plant will be completed by the summer of 2014.

Once fully operational, the plant will process approximately 1 million lbs of milk daily and have the capacity to process 2 million lbs. Plans are also in place for the plant to have the capability to add value-added production in the future, according to D.F.A.

“Partnering with farmers allows D.F.A. and our partners to utilize combined capital to develop sound projects that will deliver value to all D.F.A. members,” said Rick Smith, president and chief executive officer of D.F.A. “This investment is consistent with our strategy to deliver value to members by better serving our customers, maintaining markets for our members and developing local plant opportunities.”