Saputo's string cheese operation in Las Cruces stretches expectations

LAS CRUCES — The Las Cruces City Council recently saluted Saputo Inc., a Canada-based dairy processor, for its economic impact to the city as it formally closed a $2.8 million state- and city-funded grant agreement, enacted in 2021, that incentivized an expansion of the company’s local string cheese manufacturing facility.

According to the city’s Economic Development Department, Saputo stretched expectations along with its mozzarella, adding 216 jobs at an average wage of $44,227. A year and a half ahead of its deadline, Saputo reportedly exceeded its original promise of 150 jobs averaging $33,756 in pay, while making a $54.3 million capital investment over its promised $30 million.

Saputo purchased the west Las Cruces plant from F&A Dairy Products in 2018 with plans to double string cheese production. The state kicked in $2.5 million in Local Economic Development Act funding and the city provided $300,000 toward building and infrastructure costs, with Saputo setting its job and payroll targets by a deadline of Dec. 31, 2026.

At the Sept. 15 council meeting, City Economic Development Director Elizabeth Teeters said the facility produced approximately 4 million pounds of cheese product monthly.

Because Saputo had sustained a workforce of 297 full-time employees for six months, the company and city staff asked the council to pass a new ordinance formally closing the LEDA grant and releasing the company’s security deposit, having already recouped more return on the investment than anticipated in 2021.

City Councilor Bill Mattiace said Saputo’s performance was a testament to incentive programs, such as LEDA or industrial revenue bonds, used to lure companies to invest in New Mexico communities.

“This is good news,” Mattiace said. “This company is releasing its debt even before it’s time. We’ve increased jobs out there. When there’s companies coming … I think we need to be real positive to create those jobs and get those companies here.”

Because LEDA programs must be enacted by local ordinance, closing them out required a repealing ordinance, which the city council approved unanimously.

Hiram Roman, Saputo’s local human resources manager, told the council that Saputo exceeded expectations of its first expansion despite disruptions to industrial operations caused by the COVID-19 pandemic, and that the company planned to grow further: “We’re going to a second expansion, so more jobs. Saputo is grateful to the community.”