Vaca Negra expands Hatillo plant, boosts cheese and yogurt production

The family-run dairy business increases capacity and supports local farmers in Puerto Rico.
HATILLO, PR — Vaca Negra, the Hatillo-based producer of artisanal cheeses and probiotic yogurts, has inaugurated a new processing plant that will allow the company to significantly expand its production and market reach.
The expansion marks a milestone in the family-owned company’s 17-year history and reinforces its role in strengthening Puerto Rico’s local dairy industry.
The project, which adds 1,100 square feet and new, more efficient machinery to the facility, was made possible through a $300,000 grant from the South West Dairy Business Innovation Initiative (SDBII) at the University of Tennessee and support from the Puerto Rico Department of Agriculture’s Family Markets program. The total investment in the new addition was $500,000, News is my Business confirmed.
“This project demonstrates that the local production model works,” said Wanda Otero-Flores, microbiologist and co-founder of Vaca Negra. “We’re committed to our dairy industry, to our farmers, and with this type of institutional support, we can continue expanding without losing our roots.”
Founded in 2008, Vaca Negra began as a response to the financial crisis facing dairy farmers. Otero offered lab services in exchange for fresh milk, launching a unique barter system that evolved into the production of Puerto Rico’s first aged raw milk cheeses.
The company now sources all its milk from local farms in Hatillo, Arecibo and Camuy, helping stabilize farmer incomes and reduce milk waste.
The ribbon-cutting ceremony drew participation from municipal and central government officials, including current Agriculture Secretary Josué Rivera, who commended Otero’s drive as a small-business owner.
“At the Department, we want to maximize incentives to increase production, strengthen collaborative ties with municipalities, organizations and entities, because at the end of the day, they are not only farmers but also agribusinesses,” Rivera said.
“At the agency, you will find a helping hand, open doors and allies to ensure your growth and development,” he said, addressing Otero.

New plant to boost yogurt production
Vaca Negra currently produces eight types of cheese with European influence and a line of lactose-free probiotic yogurts in tropical flavors like papaya, piña colada and guava.
The new plant will support the production of yogurts in 8-ounce formats tailored for schools, nursing homes and convenience stores. The company projects a 40% increase in yogurt output and a 35% rise in cheese production.
“Our system not only guarantees us a consistent supply of raw materials, but it also supports the stability of our farmers,” Otero said.
The company’s products are distributed across Puerto Rico by Caribbean Produce Exchange and sold in major supermarkets including Walmart, Econo, SuperMax and Freshmart, as well as at Vaca Negra’s D’La Ubre store in Hatillo and online.
Beyond production, Vaca Negra integrates education and tourism through its “Make Your Own Cheese” agritourism program, which hosts up to 100 visitors a week. The company also prioritizes sustainability, meeting up to 80% of its energy needs through renewable sources and sourcing all packaging materials locally.
“Vaca Negra’s growth has not been improvised. It has been the product of strategic alliances, planning and a commitment to our agricultural community,” Otero noted. “This plant not only represents an increase in capacity, but it’s also a validation of the work that has been done in the field. Puerto Rico can develop its industry from within, if given the space.”
Vaca Negra currently covers between 75% and 80% of its energy consumption with renewable sources, and all packaging materials are purchased from local suppliers, Otero said.