Yogurt Production Boom in WNY

March 15, 2012 Updated Mar 15, 2012 at 7:52 PM EDT

By Kendra Eaglin

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March 15, 2012 Updated Mar 15, 2012 at 7:52 PM EDT

BUFFALO, N.Y. (WKBW) Companies like Chobani, Fage and Alpina have all opened up plants in New York and just last month Pepsi Company announced it's opening a new yogurt plant in Batavia. Construction on the plant is expected to be completed in the next two years and create 200 jobs.

The New York Farm Bureau predicts dairy farmers will need to increase dairy production by at least 15 percent in order to accommodated the demand of Greek yogurt.

U.S. Senator Charles Schumer is introducing new legislation to give dairy farmers tax breaks on equipment and livestock purchases so they can expand operations.

Schumer's bill would also create a federal savings account for farmers. The account would earn more rewards when business is strong and defer taxes on savings until the money is withdrawn.