Tyler approves new tax abatement for Hiland Dairy

TYLER – On Oct. 16, the Tyler City Council approved a 10-year tax abatement agreement with Hiland Dairy to support its upcoming expansion. This project, which is expected to generate up to $98 million in new investment, will create 30 new jobs with an estimated average annual salary of $66,000. The expansion project will add over 90,000 square feet of dry and refrigerated storage, as well as production space, significantly increasing Hiland Dairy’s capacity. The expansion includes eight additional production lines, with space available for two more lines in the future. This move aims to alleviate the current overcapacity of the Tyler facility, which produces one million gallons of milk per week and serves major local customers like Brookshire’s Grocery Company.

The farmer-owned company has been a key player in Tyler’s local economy since it acquired its current facility in 2017. With 110 employees currently working at the Tyler location, this expansion demonstrates Hiland Dairy’s commitment to continued growth in the community. The company anticipates opening the expansion in the first quarter of 2026.

“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,” said Mayor Don Warren. “This partnership is a significant win for our community and will bring lasting economic growth.”

The City of Tyler looks forward to the positive impact Hiland Dairy’s expansion will have on the local economy, with the project expected to create opportunities for both businesses and residents.