Hilmar Cheese Company
| Company type | Private |
|---|---|
| Industry | Dairy |
| Founded | 1984 |
| Headquarters | Hilmar, California , United States |
| Products | Cheese, whey protein, lactose |
Number of employees | 1000+ |
Hilmar Cheese Company is a manufacturer of cheese and whey based in Hilmar, California, United States. This privately held enterprise employs more than 1,000 individuals and focuses on the mass production of a wide range of soft and hard cheeses. By 2011, Hilmar was producing in excess of two million pounds of cheese every day, with its Hilmar facility recognized as the largest single-location cheese producer globally.
Establishment
The company was founded in 1984 by a group of 12 families in Hilmar, California, commencing operations in 1985. In 2004, Hilmar Ingredients was created to handle the global distribution of whey products, currently manufacturing over 500,000 pounds of whey protein and lactose daily and serving customers in upwards of 40 countries.
Growth
Hilmar expanded its footprint beyond California in 2007 by inaugurating a cheese and whey protein manufacturing plant in Dalhart, Texas, marking a pivotal development in its international presence. In 2014, the company introduced a milk powder processing facility located in Turlock, California, which was subsequently sold to California Dairies, Inc. in 2019.
A significant investment includes a $550 million cheese and whey protein production plant planned for Dodge City, Kansas, with construction set to begin in summer 2021. This new site is intended to boost Hilmar’s market position and strengthen its competitive edge within the dairy sector.
Environmental Concerns
A report by the California State Water Resources Control Board in 2004 disclosed that since 1989 Hilmar had been applying waste byproducts onto agricultural land in violation of state water quality standards by disposing of whey and other wastes at volumes exceeding authorized limits, enabling the company to avoid millions in treatment expenses.
Over a span of 15 years, the Central Valley Regional Water Quality Control Board documented over 4,000 infractions. Notable issues included:
- By 1990, daily waste discharge reached 140,000 gallons—more than twice the permitted amount.
- In 1997, Hilmar invested $15 million in a filtration system that operated sporadically and failed to generate profitable whey derivatives.
- Between 2001 and 2003, due to filtration breakdowns, the company released 10.4 million gallons of highly saline water.
- Plans to redirect wastewater to a nearby sewage treatment facility were abandoned because of financial concerns.
These activities negatively affected local groundwater quality, causing salinity levels to increase fivefold by 2004 and pushing arsenic and nitrate concentrations beyond federal safety thresholds. Regulators repeatedly raised allowable wastewater limits from 1990 through 1997 based on assurances from Hilmar promising pollution reduction.
The Water Board faced criticism for its lenient enforcement approach; former engineer Boris Trgovcich remarked that actions targeted only easily winnable cases, effectively permitting Hilmar to continue polluting with minimal consequences.
Following media scrutiny in 2004, regulatory authorities imposed a record $4 million penalty in 2005, which was later reduced to $1 million plus $1.8 million allocated for environmental research. Hilmar responded by installing underground injection wells in 2006 and again in 2009. Nevertheless, in 2023 the company incurred a $92,000 fine for permit breaches related to these wells, including failures to maintain proper pressure and lapses in data reporting.
External links
- Articles with short description
- Privately owned companies in California
- Dairy industry companies in California
- Businesses located in Merced County, California
- Established in California in 1984
- Food and beverage companies founded in 1984
- American enterprises founded in 1984
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- Companies of the United States by year of establishment
- American companies established in 1984