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One of the Central New York Regional Economic Development Council's priority projects for 2019 is an $89 million project — dubbed "Project Eagle" — to help Cayuga Milk Ingredients grow its customer base. The company requested a $6 million state grant, according to the council's report released Wednesday.Ìý

Cayuga Milk wants to install an evaporator, feed system and an ultra-high temperature aseptic bottling line. Kevin Ellis, the company's CEO, told мÓƶà¶à¿ª½±¼Ç¼ Thursday that the expansion will allow them to take on new customers.Ìý

"We are at a point in our life cycle right now where we've filled out all the capacity and fully rebounded from the Canadian ordeal," said Ellis, who referred to Cayuga Milk Ingredients losing $30 million in sales overnight due to a trade dispute with Canada. "We're now looking to be able to grow a little bit more." 

Ellis sees an opportunity for the company to add customers in Southeast Asia. Cayuga Milk has customers in Indonesia, Malaysia, the Philippines and Vietnam. China was a target for the company, but with the ongoing trade war they put those plans on hold.Ìý

The proposed project is one part of Cayuga Milk's future plans. Ellis said they're also exploring being a co-manufacturer for consumer dairy products. But challenges with the wastewater system serving the Aurelius plant may require them to seek another location out of state for that project.Ìý

Ellis explained there is another factor that led him to look at out-of-state sites. With 50 million people between Boston and Washington, D.C., locating this new facility in southeast Pennsylvania is an option.Ìý

"Everything is in play right now," he said. "There are many, many reasons why we want to keep it at one site. It's harder to manage two different sites than it is one site. I'm a proud New Yorker. I want to keep everything here. But I'm also paid to do a job and look at all the alternatives and opportunities as well." 

For now, the focus is on the project backed by the regional council. Cayuga Milk has 75 employees and could add as many as 34 new jobs with the expansion.Ìý

Ellis noted they originally planned to create 56 jobs when the milk processing facility opened in 2014.Ìý

Cayuga Milk will learn in December whether the state will support the project. The state provided $4 million for the construction of the facility, and now could play a role in its expansion.Ìý

Ellis is appreciative of the state's assistance.Ìý

"It feels good. The state is actually supporting our dairy industry," he said. "As I look across the landscape, I see farmers that are growing but I often times don't see processors growing at the same rate. It's nice to feel that support. I think the state being supportive of our dairy industry is encouraging."