In the ever-evolving landscape of the dairy industry, leadership that genuinely understands the grassroots level is invaluable. Allan Huttema embodies this spirit in his role as the CEO of Darigold, a title he has held for a little over a year. His journey from being a dairy farmer to leading a complex cooperative highlight a unique blend of hands-on experience and strategic vision.
Transition Rooted in Experience
Huttema’s transition to the CEO position of Darigold in April 2024 wasn’t abrupt. His association with the company spans over a decade, first as a board member, then as chairman of the board for three years before being named as the interim CEO in December 2023. A dairy farmer in Idaho and a dedicated member-owner of the Northwest Dairy Association (NDA) for more than 25 years, Huttema brings a producer’s perspective to the executive decision-making table.
“When the board asked me if I would serve as Interim CEO, I said I would do it. As a dairy farmer myself, I know how important it is to have Darigold be successful and vibrant to serve as the marketing and processing arm of our co-op,” Huttema says. This sentiment underscores his commitment not just to the company but to the broader community of dairy farmers. He aims to preserve the way of life that farmer-owners, including himself, have dedicated themselves to.
Bridging Distances
Huttema’s role isn’t confined to an office in Seattle. He actively commutes between Idaho and Seattle to stay attuned to the nuances of Darigold, Inc. This marketing and processing subsidiary of the Northwest Dairy Association represents nearly 300 family-owned farms across Washington, Oregon, Idaho, and Montana, and handles approximately 10 billion pounds of milk annually. It’s a responsibility Huttema embraces with a deep sense of duty.
“The longer I did it, the more the board thought it was a good idea. So about four months in, they asked if I would do it,” he shares, reflecting on his transition from interim to permanent CEO.
Empowering Growth
A critical aspect of Huttema’s leadership focuses on empowering his employees and equipping them with the resources necessary for success. One of his first initiatives as CEO was establishing a weekly performance scorecard to review progress, address challenges, and ensure alignment with company objectives.
Understanding and leveraging the potential of his team has pleasantly surprised Huttema.
“The most surprising part of my job is really understanding just how much my employees care about their job and about the company,” he admits, highlighting the dedication and passion embodied by the Darigold team.
Overseeing 1,800 employees, Huttema profoundly understands the value of the milk check. He shares exciting plans for a new processing plant in Washington expected to be completed by early May 2025, aiming to enhance the company’s growth in volume and value.
“A large portion of our business is in Washington state,” he notes. “We won’t have to move that milk out of the region anymore to the west side of Washington, so for the company, this is very exciting.”
Looking Ahead
Huttema confidently addresses foreseeable challenges, such as the expected decline in cooperative membership over the next five years, reassuring stakeholders that the milk supply will remain steady.
“Actually, I think it’ll grow,” he expresses optimistically.
Trade is another key subject on Huttema’s radar.
“I think trade generally concerns me. A new administration, or any administration change, is always a concern,” he shares. “Trade is significant for us as a company because we export many of our products.”
Despite concerns, Huttema sees strengths domestically. “The consumer market domestically is strong, and butter is on trend.”
Southeast Asia remains one of their largest markets for powder, with Japan being a big market for cheese and Mexico for powders, Huttema notes.
Through his journey and vision, Allan Huttema continues to steer Darigold towards growth and resilience, honoring the legacy of family-owned farms and embracing the future challenges and opportunities within the dairy industry.
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