Processors

Danone to Close New Jersey Plant-Based Beverage Facility

Fri, 08 May 2026 17:19:40 GMT

Danone is planning to close a dairy-alternatives manufacturing facility in Bridgeton, New Jersey, later this summer. The facility currently manufactures beverages sold under the Silk and So Delicious Dairy Free brands.

According to the company, production from the Bridgeton plant will be redistributed to facilities in Mt. Crawford, Virginia; Dallas, Texas; and Jacksonville, Florida. The French food company confirmed the site will close Aug. 4.

“This change is part of a broader effort to transform our network and enables our investment in critical capabilities across our core U.S. footprint for the long term,” Danone said in a statement to Just Food.

The closure comes as the company works through challenges in its North American plant-based segment. During Danone’s 2025 earnings discussion in February, CFO Juergen Esser described the company’s North American plant-based performance as “unsatisfactory” in 2024.

Market data suggests growth in the dairy-alternative category has slowed. According to a report from the Good Food Institute, plant-based dairy-alternatives remained the largest plant-based food category in the U.S. in 2025, generating $2.7 billion in sales and accounting for 13% of total retail milk sales.

However, overall plant-based dairy alternative sales declined 2% year-over-year.

Expanding Dairy Capacity

The Bridgeton closure contrasts with several recent investments Danone has announced across its broader dairy network.

Last month, the company unveiled plans to invest approximately $23.5 million to expand skyr production in France. In November, Danone also announced a major investment at its Boucherville, Canada, facility that will increase yogurt production capacity by 40% and raw milk processing capacity by 20%.

The company also shared plans in August 2025 to expand its yogurt manufacturing facility in Minster, Ohio, which produces brands including Oikos, Activia, Dannon and Danimals.

Walmart Opens New $350 Million Milk Processing Plant in Texas

Wed, 29 Apr 2026 16:03:23 GMT

Walmart has opened a new $350 million milk processing plant in Robinson, Texas, expanding its push into direct dairy processing and adding capacity in a growing milk region.

The new plant covers more than 300,000 square feet and represents an investment of over $350 million. It’s expected to employ more than 400 people and will supply Walmart and Sam’s Club stores across the South Central U.S.

According to the company, the plant will source milk directly from local and regional dairies and process it into a range of fluid milk products, including gallon and half-gallon packages of whole, 2%, 1%, skim and chocolate milk. These products will be bottled under Walmart’s private label brands, including Great Value and Member’s Mark, and distributed to more than 650 stores in the region.

(Walmart)

“The opening of our new facility in Robinson, Texas, will help us deliver more of what customers want—fresh, affordable food and quality they can trust,” says John Laney, EVP of food for Walmart U.S. “It strengthens our supply chain, improves freshness, and reduces time from dairy farm to shelf.”

Walmart has taken a similar approach with its other milk processing facilities in Fort Wayne, Indiana and Valdosta, Georgia, which also supply stores within their respective regions. The Robinson plant is the third in that network and expands the company’s processing footprint into the South Central U.S.

(Walmart)

According to the company, the facility is part of a broader effort to streamline its dairy supply chain and support more consistent availability of fluid milk in its stores.

“This milestone reinforces Walmart’s commitment to building a more transparent and efficient supply chain for dairy products, helping Walmart meet customer demand for high-quality, affordable milk across the South Central U.S.,” the company said in its announcement.

The Robinson facility is part of Walmart’s broader investment in U.S. manufacturing and sourcing. The company has set a goal of investing $350 billion in products made, grown or assembled in the U.S. by 2031. In its most recent fiscal year, more than two-thirds of Walmart U.S. product spending went toward items produced domestically.

Crossbreeding Gains Ground as Some Dairies Scale Back Jerseys

Wed, 22 Apr 2026 14:59:37 GMT

Not long ago, Jerseys were gaining ground on many dairies. Strong butterfat tests and a reputation for feed efficiency made the smaller brown cows an attractive option for producers chasing component premiums. In many herds, Jerseys filled that role well, especially when milk checks heavily rewarded fat.

But the advantage that once set Jerseys apart has narrowed. Years of genetic progress have pushed Holsteins to improve components while maintaining their high production levels. As that gap closes, some dairies that once leaned into Jerseys are beginning to reconsider the role the breed plays in their herds.

Changing Views on Herd Composition

This shift is easy for Jason Anderson to spot. As a dairy consultant with Progressive Dairy Solutions, he works with dairies across the western U.S. and says herd makeup conversations are happening more often.

“Jerseys made a lot of sense when butterfat premiums were really strong and producers were chasing components,” Anderson says. “But now that Holsteins are improving components and still bringing the production, some dairies are reevaluating that balance.”

(Jason Anderson)

That change is showing up in herd composition in different ways. Some producers who once expanded Jersey numbers are now leaning more toward Holsteins or rebalancing their breed mix, while others are turning to crossbreeding programs.

In each case, the goal is the same: select cows that fit the environment and the way milk is paid.

Payment Signals Are Shifting

Behind many breeding decisions is a change in how milk is valued. In some regions, processors are not only reducing premiums for high butterfat but also applying deductions when fat levels run too high relative to protein.

“[Processors] have taken the premium off fat a little bit because there’s been so much of it produced,” Anderson says. “Essentially, they’re trying to bring the protein-to-fat ratio closer together.”

Protein is playing a larger role as processors adjust product mixes, shifting emphasis in how milk is evaluated.

“We’re continually trying to increase protein content,” Anderson says. “You can push protein nutritionally with amino acids, but that can get expensive. Doing it genetically is a much cheaper approach.”

Because genetic change takes time to reach the bulk tank, producers are making breeding decisions based on where they expect markets to go, not just where they are today. For many operations, that outlook is shifting herd direction away from Jerseys and toward more Holstein influence.

Those market signals are also showing up in herd economics.

“Using data from our high-producing herds within PDS, Holsteins show about a $3.20 per cow advantage in gross margin compared to Jerseys,” Anderson says. “That comparison used the Adisseo MilkPay model, assuming a Jersey at 68 pounds of milk with 5.3% fat and a Holstein at 94 pounds with 4.3% fat, while holding feed efficiency constant.”

Crossbreeding Gains Momentum

While crossbreeding is not new to the industry, interest has grown as producers look for improvements in fertility, longevity and overall herd performance.

As production levels climbed through purebred genetics, some herds began to see more challenges with reproduction, metabolic stress and cow turnover, prompting them to rethink breeding goals.

By combining breeds, producers have been able to capture hybrid vigor, which often shows up in fertility, survival and resilience. Crossbreeding can also help improve production consistency and better balance components to match today’s milk pricing signals.

Anderson says many dairies are now several generations into structured crossbreeding systems.

(Jason Anderson)

“About half of one of my client’s herd is crosses, F1, F2, F3s, HoJos, whatever you want to call them,” Anderson says. “Our strategy is we’re breeding these crosses back to F1 bulls, and we’re working on our fifth generation.”

The result is improved fertility and lower replacement needs as cows remain productive longer.

“When cows stay in the herd longer, that changes the economics pretty quickly,” Anderson says. “You’re not raising as many replacements, and the cows that are in the herd have already paid off their rearing costs.”

Crossbreeding can also moderate cow size, helping animals fit more comfortably into modern facilities.

“A lot of producers want a more moderate cow that still produces well but is easier to manage,” Anderson says. “You can get that balance when you start combining breeds.”

The Herd Continues to Evolve

The way producers think about breed balance is shifting, and herd makeup is changing with it. Jerseys still have a place on many farms, but their numbers may slide back in some regions as producers rethink the balance with Holsteins.

(Jason Anderson)

“The industry used to have a very specific picture of the ideal cow,” Anderson says. “Now producers are thinking more about what works in their system and what makes the most economic sense.”

That flexibility is reshaping herds across the country, whether through crossbreeding or more targeted selection within Holsteins and Jerseys.

A decade ago, herd dynamics looked different from what we see today. Walk through a dairy barn ten years from now and the cows may look different once again. What will stay constant is the goal behind them: building a cow that fits the farm, the market and the future.

Hiland Dairy Opens New $100 Million Plant in Texas

Mon, 06 Apr 2026 18:46:29 GMT

Hiland Dairy Foods Co. has expanded its processing capacity in Tyler, Texas , with a new $100 million production facility designed to meet the growing demand for dairy products across the state.

The expansion adds automated packaging technology, four new milk silos and additional storage space to improve efficiency and increase production capacity. The 96,000-square-foot, state-of-the-art facility sits next to the company’s original Tyler dairy site, which dates back to the 1920s.

(Hiland Dairy)

With the upgrades, plant leaders say the facility will be able to dramatically increase output.

“With the new equipment, we’ll be able to quadruple our output to more than 1 million gallons of milk per week,” says Barry Beaman, general manager of Hiland Dairy’s Tyler plant.

According to company officials, the investment is intended to strengthen the company’s regional processing capabilities while supporting continued growth in the Texas dairy market.

(Hiland Dairy)

“This expansion is more than just growth in our physical footprint; it’s a commitment to the future of Tyler,” Rick Beaman, president of Hiland Dairy, says in a company press release. “We deeply appreciate the support we’ve received from the city, and we’re excited to continue providing good-paying, stable jobs for this community for years to come.”

Texas ranks among the top five milk-producing states in the U.S., and Hiland says the additional capacity will help the company better serve customers in the region.

(Hiland)

“This investment is not just about expanding our capabilities — it’s about ensuring that Tyler remains at the heart of Hiland Dairy’s regional operations,” Barry Beaman says. “The project will provide numerous employment opportunities, contributing to the economic stability of Tyler and its surrounding areas.”

Scaling Up Michigan Dairy: Fairlife’s $650 Million Expansion in Coopersville

Wed, 01 Apr 2026 16:31:26 GMT

Michigan’s dairy industry is getting another major boost as The Coca-Cola Company-owned Fairlife announced a $650 million investment to expand its Coopersville production campus. According to the company, the project comes as consumer demand for value-added dairy beverages, including ultra-filtered milk and protein shakes, continues to grow.

The expansion will add 245,000 square feet of production space and two state-of-the-art high-speed production lines. Construction is scheduled to begin in 2026, with the new lines expected to be operational by 2028. The project is also expected to create 150 new jobs in the region.

Fairlife has been part of the Coopersville community since 2012 and currently employs more than 400 workers. Over the past decade, the facility has grown steadily and is now one of the state’s largest dairy-related food processors, playing a major role in Michigan’s agribusiness economy. It also coincides with the planned opening of a new Fairlife production facility in Webster, New York, later this year, signaling growth for the brand beyond Michigan.

“Michigan has been and will continue to be a dairy powerhouse,” says Pierce Bennett, livestock industry relations specialist with the Michigan Farm Bureau. “We are excited to see that significance recognized and look forward to the opportunities this investment will provide Michigan dairy farmers.”

(fairlife)

Growth Driven by Demand

Coca-Cola’s February 2026 Form 10-K filing shows that the company derives most of its dairy revenue through Fairlife, which purchases milk from dairy cooperatives to fuel production. While milk sourcing is concentrated among a few cooperatives, Coca-Cola says it has access to alternative suppliers if necessary to maintain supply.

The company added that Fairlife’s expansion is essential to meet rising consumer demand for products that provide higher protein and less sugar than traditional milk. The brand’s growth has mirrored broader gains across Coca-Cola’s beverage portfolio. During a February earnings call, Chief Operating Officer Henrique Gnani Braun said volume grew across Fairlife, Coke, Sprite Zero and BODYARMOR. Braun noted that innovation, increased availability and expanded distribution helped drive this growth.

State Support and Community Impact

The project has received support from the Michigan Economic Development Corporation, which approved a $3.9 million Alternative State Essential Services Assessment abatement. Governor Gretchen Whitmer calls the investment “a huge win for Michigan” and says it shows how infrastructure improvements, workforce training and collaborative planning can help the state compete for transformational economic projects.

Fairlife’s announcement marks the second major dairy expansion in Michigan in the past 30 days, following Chobani’s $567 million investment to expand yogurt production in Twin Falls, Michigan. Together, these projects highlight the state’s growing role in value-added dairy processing and its ability to attract large-scale investment.

The Kansas Surge: How Processing Capacity is Redrawing the Dairy Map

Tue, 17 Feb 2026 14:21:50 GMT

In the world of dairy expansion, the old adage “if you build it, they will come” has found a modern home in the Sunflower State. While traditional dairy hubs like California face structural headwinds and regulatory constraints, Kansas is witnessing a period of tremendous growth that is fundamentally reshaping the industry’s geography. According to Phil Plourd of Ever.Ag, this surge is a direct result of alignment between massive new processing infrastructure and on-farm expansion.

The “Hillmar Effect” and the Processing Pull

The epicenter of the Kansas dairy boom is inextricably linked to the arrival of significant processing capacity, most notably the Hilmar plant. Plourd notes the relationship between producers and processors has entered a new phase of lockstep development.

“If you create an attractive situation, farmers are coming,” Plourd explains. “You need plant infrastructure to encourage farm investment, because otherwise, there’s really no home for the milk.”

This growth isn’t just coming from green site projects, but also from the aggressive expansion of existing operations. Dairy producers in western Kansas are finding being in proximity to new, high-capacity plants reduces transportation costs and provides a stable, long-term market for their milk. Unlike other regions, where base programs and production caps have been implemented to slow supply, Kansas is actively building the pipeline to handle more.

The Competitive Edge: Labor, Feed and Water

Beyond the plants, Kansas offers structural advantages that make it an attractive destination for large-scale dairying. Greg Bethard of High Plains Ponderosa Dairy has noted the region’s existing agricultural density — specifically the presence of large beef feedlots — creates a unique synergy.

“When you’re next to other feed yards and similar enterprises, it helps with labor,” Plourd says, echoing Bethard’s observations. The concentration of agricultural activity means a ready pool of skilled labor and service providers who understand large-animal agriculture.

Furthermore, Kansas remains a good feed area. The ability to grow high-quality forages locally, combined with what Plourd describes as “okay” water characteristics relative to other high-production regions, provides a level of cost-stability that is becoming harder to find on the West Coast.

Bethard, operating in the High Plains of Kansas, is already strategizing for a future with less water by transitioning his crop rotation toward wheat and soy, which requires fewer inputs than corn silage.

“We have to make sure that 30 years from now, we can still milk cows where we are,” Bethard says.

California’s Structural Stall

The growth in Kansas stands in sharp contrast to the situation in California. While California remains the nation’s top milk producer, Plourd sees very little structural growth happening there. Instead, the state is facing a period of consolidation and potential exits.

“We continue to see some sellouts there,” Plourd says. “It’s hard to do business in California on both ends of the spectrum. At the same time, California has a huge population and direct access to the Pacific Ocean for exports, so the industry will continue to see some baseline stability.”

While the current growth in Kansas is explosive, Plourd expects it to eventually reach a plateau.

“Once the new capacity is full, it’ll level off — unless somebody else builds something else,” he says. For now, the roadway is paved for the Sunflower State. As long as the infrastructure continues to expand, the cows will continue to follow, cementing Kansas as a cornerstone of the modern U.S. dairy landscape.

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Rob Vandenheuvel Takes the Helm at California Dairies Inc.

Thu, 06 Nov 2025 16:12:05 GMT

In a significant leadership transition at California Dairies Inc. (CDI), Rob Vandenheuvel has been appointed as the new president and CEO, effective November 1. This change marks the start of a new chapter for CDI, following the impactful tenure of the retiring CEO, Brad Anderson.

A Legacy of Excellence
Anderson’s tenure as CEO was characterized by visionary leadership and transformative achievements. Over his six years as CEO, Anderson reshaped CDI by spearheading key projects, like the state-of-the-art facility in Bakersfield, Calif., and diversifying the company’s offering with products such as lactoferrin. His commitment to sustainability through the “Golden State Advantage” initiative has positioned CDI as an environmental leader in the industry.

Cory Vanderham, chairman of CDI’s board of directors, expressed deep gratitude for Anderson’s contributions, emphasizing the culture of innovation and integrity he fostered. Anderson’s legacy extends beyond business metrics; he established a foundation of excellence that will benefit CDI’s employees, customers, and member-owners for years to come.

“It’s impossible to overstate Brad’s impact on CDI,” Vanderham said. “For years, his visionary leadership, strategic acumen, and steady hand have guided CDI, building a culture of innovation and integrity. He didn’t just lead CDI, he built a legacy of excellence that will benefit our employees, customers and member-owners for years to come. We are immensely grateful for his dedication and wish him all the best in his well-deserved retirement.”

A New Chapter Begins
Vandenheuvel steps into the role of president and CEO with a strong track record at CDI. His appointment underscores the board’s commitment to fostering internal leadership talent. With his background as a chief operating officer and experience in industry relations, supply chain and operations, Vandenheuvel is well-equipped to guide CDI’s future.

“Rob is the perfect leader to guide CDI into its next chapter,” Vanderham continued. “His deep understanding of our business, combined with his strategic vision and proven ability to execute, makes him the clear choice. The transition period since July has been exceptionally smooth, and the board has full confidence that Rob will continue to build on our success and drive sustainable growth.”

Vandenheuvel brings a wealth of experience from his previous role as general manager at the Milk Producers Council and his roots in California’s dairy industry. Such deep industry knowledge and an ingrained understanding of CDI’s values make him an ideal leader to continue steering the cooperative forward.

Looking Forward
The transition to Vandenheuvel’s leadership promises continued growth and strategic advancements for CDI. Vanderham expressed confidence in Vandenheuvel’s ability to nurture CDI’s success and drive sustainable progress. Anderson will remain involved in an advisory capacity to support this leadership transition until the end of the calendar year.

As CDI looks to the future, the cooperative celebrates the achievements of the past and anticipates the opportunities ahead. With Rob Vandenheuvel at the helm, CDI stands poised to honor its legacy while embarking on a new era of excellence and innovation.

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A New Era for Bongards' Creameries: Dennis Thomas Appointed as CEO

Thu, 28 Aug 2025 20:35:45 GMT

Bongards’ Creameries is set to enter a new era of leadership as Dennis Thomas, the current chief operating officer, will assume the role of president and CEO on Jan. 1, 2026. Brent Ziegler, chairman of Bongards’ Creameries, recently announced this change, which comes as Daryl Larson prepares for his retirement after a successful tenure that began in 2018.

Leadership Transition
“We’re confident that Dennis, with his tremendous depth of experience and knowledge, will successfully lead Bongards into the future, building upon the growth and industry leadership that Daryl has achieved during his tenure,” Ziegler says, noting the company’s faith in Thomas’ capabilities to steer Bongards forward, ensuring continued success and innovation in the competitive dairy industry.

Thomas brings a wealth of industry experience to his new role. Before joining Bongards’, he held various general management positions at Dairy Farmers of America, Foremost Farms, Land O’Lakes, and Kraft Foods. During his five-year tenure at Bongards’, Thomas has played a pivotal role in expanding operational efficiencies and increasing the company’s manufacturing capacity at its facilities in Humboldt, Tenn., and Bongards, Minn.

“I am honored to be appointed CEO of Bongards and being part of the talented team within this wonderful company,” he says. “Having grown up on a farm in rural South Dakota, I look forward to serving our farmer-owners as we continue building on our positive momentum and delivering strong results.”

About Bongards Creameries
Founded in 1908 in Bongards, Minn., Bongards Creameries is a farmer-owned cooperative with a long-standing history of excellence in the dairy sector. The co-op’s owner-member dairy farms are located in Minnesota and North Dakota, collectively forming a powerhouse of dairy expertise and production.

As a vertically integrated global cheese supplier, Bongards produces hundreds of millions of pounds of natural cheese, processed cheese and whey annually. Their products serve a diverse range of clients, including major food service operators, food manufacturers and distributors. Bongards’ cheeses can be found in a variety of settings such as commercial restaurants, K-12 schools, retail delis and convenience stores.

With corporate offices in Chanhassen, Minn., and production facilities across Bongards, Perham and Humboldt, Bongards Creameries continue to shape the dairy industry through its commitment to quality and innovation.

As Dennis Thomas prepares to lead Bongards into the future, the company looks to solidify its position as a leader in quality cheese production and further expand its global reach in the dairy market.

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IDFA Announces Dairy Forum 2026 — UNITED FOR DAIRY

Wed, 30 Jul 2025 17:22:05 GMT

From January 25–28, 2026, more than 1,200 leaders from across the dairy supply chain will unite in Palm Desert, California, for the industry’s premier annual event. Held at the luxurious JW Marriott Desert Springs Resort & Spa, Dairy Forum 2026 will bring together executives from dairy processors, cooperatives, retailers, and suppliers to strengthen collaboration, spark innovation, and shape a bold, dynamic future for the industry. This year’s theme—UNITED FOR DAIRY—highlights the industry’s shared commitment to progress through innovation, leadership, and cross-sector partnerships.

“Dairy Forum 2026 is where the future of dairy takes shape,” said Michael Dykes, D.V.M., president and CEO of IDFA. “This is the place for leaders to come together, build meaningful connections, and explore new strategies to grow, adapt, and lead. When we are united, the dairy industry is more resilient, more innovative, and more prepared to meet the moment.”

Dairy Forum includes main sessions, deep dive sessions, panel discussions, special presentations by conference partners, and numerous opportunities to connect with leaders in the dairy industry. The 2026 event features keynote presentations from:

Rahm Emanuel, former U.S. Ambassador to Japan, Mayor of Chicago, White House Chief of Staff, and U.S. Congressman
Sarah Frey, farmer, best-selling author, speaker, and entrepreneur
Jason Dorsey, researcher, speaker, and best-selling author
Brad Nordholm, president and chief executive officer, Farmer Mac

Set against the stunning backdrop of the California desert, the JW Marriott Desert Springs Resort & Spa offers panoramic views, two championship golf courses, world-class tennis and pickleball courts, sparkling pools, and a luxurious day spa. Guests can enjoy a variety of dining options at signature restaurants offering fresh, local cuisine. With over 234,000 sq. ft. of indoor and outdoor event space, it’s an ideal destination for gatherings in the heart of the desert.

Sponsorship opportunities are available to organizations looking to elevate their brand among the industry’s most influential decision-makers.

To register for Dairy Forum 2026 and explore sponsorship opportunities, visit www.dairyforum.com .

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New York: A Hub for Modern Dairy Processing

Fri, 25 Apr 2025 14:11:02 GMT

While states like South Dakota, Kansas and Texas have gained attention in the spotlight for their growing dairy industries, eyes are now turning eastward. New York is emerging as a significant player in dairy processing, backed by major industry investments that promise to reshape the landscape.

Chobani Leads the Charge
Chobani, a renowned name in the dairy sector, is making headlines with its ambitious plans. Since opening its first U.S. plant in New York back in 2005, Chobani has established itself as a key player. Now, the company is set to build a sprawling 1.4 million sq. ft. facility in Rome, Oneida County. With an investment of $1.2 billion, this state-of-the-art plant will have the capacity to churn out over 1 billion lb. of high-quality dairy products annually. As Chobani’s founder and CEO Hamdi Ulukaya puts it, “When you invest in people, in local communities, you’re not just building a business — you’re building a future.”

Other Key Players
Joining this wave of investment is Fairlife, which is owned by the Coca-Cola Co. The company broke ground last year on a $650 million milk processing plant in upstate New York that is slated to become operational later this year. Further bolstering New York’s dairy credentials is the Great Lakes Cheese facility. This noteworthy initiative has a $621 million investment underway south of Buffalo.

Economic and Career Opportunities
These investments are not just about enhancing production capacity. They signify robust economic opportunities for the state. Roberta Reardon, New York State Department of Labor commissioner, underscores the industry’s vital role by stating, “New York’s dairy industry is essential to the success of our state’s economy, putting food on the table for families statewide and providing countless pathways to good-paying careers.”

Phil Plourd, president of Ever.Ag Insights, echoes a sentiment of optimism, observing that producers in New York and throughout the Northeast are eager to see the unfolding wave of plant infrastructure investments.

“There’s still a lot to learn about timelines and procurement plans, but we expect to see investment on the farm side, as well,” he remarks.

Boost in Dairy Farm Modernization
Don Mayer with DeLaval points out the significance of processing expansion in New York.

“We have several large projects sold in New York and are actively working on several other projects. They cover the spectrum, rotary, in-line parlors and robots,” he says. “There are also some capital credits available for dairy farm expansion and improvements from the state.”

New York’s dairy modernization grant program offered more than $20 million in grants for dairy farm improvements. Awarded projects ranging from $50,000 to $250,000 will help offset the costs of critical technology and infrastructure that will improve storage solutions and avoid the need for raw milk dumping during emergency events.

New York has roughly 3,000 dairy farms that produce more than 15 billion lb. of milk annually — currently making New York the nation’s fifth-largest dairy state.

New York’s dairy renaissance is more than just a trend. It’s a lasting transformation poised to position the state as a leader in dairy processing. With significant investments from industry giants like Chobani, Fairlife and Great Lakes Cheese, New York is not only setting the stage for increased production but also bolstering its economy and opening pathways to lucrative careers in the dairy industry. As these projects progress, the future of dairy in New York looks promising indeed.

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fairlife Launches Dairy, Lactose Free Coffee Creamers

Thu, 14 Nov 2024 19:41:04 GMT

Branching out from their signature ultra-filtered milk products lineup, fairlife is stepping into the real dairy coffee creamer arena. Available in four different flavors; hazelnut, caramel, vanilla and sweet cream, the creamers contain 40% less sugar than regular coffee creamers and are also lactose free.

“Today, the creamer category is dominated by choices that lean heavily on indulgent flavors,” says Bill Kelly, chief marketing officer at fairlife in a recent press release. “As sales of premium coffee grow, our research shows that many consumers want to enhance the taste of their coffee, not cover it up.”

According to a 2019 Mintel report, the coffee category is expected to grow from $15.1 billion in 2019 to $18.5 billion by 2024. Growing alongside it, the creamer market is projected to grow from $6.1 billion to $7.5 billion.

“We created Fairlife creamers to provide these coffee drinkers with a great-tasting option that offers real dairy with a hint of flavor to enhance their coffee experience,” Kelly says in the press release. “Our creamers are made with ultra-filtered milk and 40% less sugar than other creamers. It’s just another way to offer consumers delicious products with enhanced nutrition profiles.”

At the beginning of 2020, the Coca-Cola Company announced that it had acquired the remaining stake in fairlife LLC from its joint venture partner Select Milk Producers.

“We are excited for the next chapter of fairlife’s growth and innovation and look forward to continuing to work with our partners across the Coca-Cola system to meet fast-changing consumer needs in a vibrant category,” fairlife CEO Tim Doelman said in a press release. “We set out in 2012 to harness the power and nutrition of dairy and give people great-tasting products that provide the nutrition they are looking for. Our innovative product lines will continue to grow and improve with the strength and scale of The Coca-Cola Company.”

For more on fairlife, read:

Midwest Dairy Producers Forced to Dump Milk

Fri, 04 Oct 2024 20:19:15 GMT

With much of the Upper Midwest processing capacity maxed out in terms of milk production, finding a new home for milk is not an easy task. Lucas Sjostrom, the executive director of Minnesota Milk shared that Hastings Creamery ability to discharge is shut down for 30 days, as they need to take their waste elsewhere. Sjostrom shares they are continuing operations and are accepting and diverting milk from the same farmers as needed.

“We’ve been working over the past few weeks with the farmers to find alternative markets while government officials have been looking to find a solution to keep the plant open,” he says. “We believe every milk buyer across the Upper Midwest is aware of the situation. Plants are already voluntarily dumping milk on-farm on certain days and even though we have transportation available, most plants cannot currently take the milk even for free.”

Hastings Creamery processes 150,000 lbs. of raw milk each day and purchases it from dairy farmers located in both Minnesota and Wisconsin. A variety of dairy products are under Hastings Creamery label, as well as some private labels for other companies and grocery store chains.

Justin Malone, one of the creamery’s owners, shared that it is a tough time in the dairy industry and some farmers are forced to dump milk because they can’t find any processing plants with the capacity to accept additional milk.

Other Farms Forced to Dump Milk, Too

The reality is that not only Hastings Creamery is impacted by an oversupply of milk on the market. Mitch Thompson owns and operates Thompson Family Dairy in Lewiston, Minn., and is a member-owner of Associated Milk Producers Inc. (AMPI). He shared that he had to dump milk from his herd on June 2.

“The milk hauler picked our milk up and said, ‘Well, I’m taking it to another farm’s field that just chopped rye to dump the milk in the field,’” he says, noting that he still will get paid for that dump milk, but shares the whole cooperative suffers when milk isn’t sold.

Thompson is uncertain on how long dumping milk will continue but shares that he is concerned about the current state of the dairy industry.

“We’re shipping around 70,000 lbs. of milk a day, so I worry where’s all that milk going to go,” he questions. “If they keep dumping the milk, how bad is our [milk] price going to get?”

At the time of the interview, Thompson shared that his farm’s milk was picked up and taken to the plant on June 5.

“It sounded like they were going to get a couple of other different farms and dump their milk like everybody’s taking their turn,” he shared.

Meanwhile, it’s normal business at Thompson Dairy, as cows must be milked every day. Even when the milk is then dumped into a nearby field.

“This is a real kick in the shorts. How long can you keep doing this when the milk price is so low already,” Thompson notes, sharing that he is concerned about the current situation of milk being dumped, as well as low milk prices.

“I just wonder when will things turn around,” he asks.

Flooded Milk Market

Sarah Schmidt, vice president of marketing with AMPI, says the reason producers are having to dump milk is simply because there is currently a flooded milk market.

“There is more milk on the market and fluid milk sales have declined dramatically, especially with schools closing for the summer,” she says. “Those fluid milk sales were there for the past several months and simply are not there now.”

Schmidt comments that milk from outside the Upper Midwest is pushing into the region and displacing typical, seasonal sales. She also notes all AMPI milk receiving plants are running at full capacity.

“The milk produced on member farms is exceeding our processing and marketing capacity,” she says. “The team is working hard to keep milk moving into processing facilities.”

Schmidt says unfortunately they do not see any specific signs as to when the tides are going to turn.

“What we do know is that dairy farmers produce a fantastic product and there is good demand for cheese and butter. I’m hopeful low cheese market prices make their way into the grocery stores, spurring increased sales,” she says.

Status Quo is Not the Goal for This Wyoming Young Dairy Producer

Fri, 27 Sep 2024 02:25:35 GMT

When you think of Wyoming you often think of scenic mountain views, roaming wild buffalo and a romanticized cowboy way of life. Generally, you don’t think of dairies. Although, travel to Carpenter, Wy., and you’ll see two-thirds of the state’s 9,000 dairy cows, who are milked at Burnett Dairy. You’ll also get to see an upcoming second-generation dairy farmer, Reese Burnett, who simply couldn’t imagine his life anywhere else, but in his home state of Wyoming, milking cows along with his family for a living. Reese’s goal is to not let grass grow under his feet, as he is enthusiastic to help drive his family’s dairy forward.

Unique Upbringing

Reese’s grandparents had a small cow-calf operation, along with dryland wheat, an hour north of Greeley, Colo. The family farm grew and diversified, including custom feeding cattle and running small feedlots. In the early 2000s, when mad cow Disease hit, the Burnetts were challenged with finding customers for their feedlot that forced them to change direction.

“This is what pushed my parents into the dairy business,” he says. “They started by renting a neighboring dairy in 2004, milking 200 cows. A year later they started Burnett Dairy and today milk 6,200 cows in a 110-cow GEA rotary.”

Reese left Wyoming and headed to Kansas State for college in 2018. When he returned home to the family farm, he spent a lot of time on genetics, herd health and nutrition. Over time, he has added additional responsibilities, including sharing the employee management.

“I’m very fortunate. My mom and dad and uncle have given me a lot of freedom in my work and have really allowed me to take off and do some fun things with our dairy,” he says.

For example, Reese quickly saw that milking the entire herd 3x a day was too much for the parlor to keep up with. He recommended milking more cows and shared that the majority still could get milked three times a day, with the remainder twice daily. Running 22.5 out of 24 hours and shutting down twice a day for a wash cycle, Reese shares that now the parlor is running at capacity.

Challenges Presented

Like many dairies, Burnett Dairy is no exception to challenges. Weather extremes—going from 95-degree summers that require irrigation to grow crops to sub-zero temperatures in the winter challenge Wyoming farms. Reese says that the dry heat is tolerable for the cows. Winters can be especially brutal, as he shares this past winter dropped 40 degrees in 30 minutes.

With Cheyenne an hour away, the Burnetts house all their employees, as it is too far away to commute them to work. With the magnitude of the dairy shipping seven semi-loads of milk each day and the new technology of the carrousel, including the two robots in the entry that pre-dip and clean teats, as well as a robot on the back side of the deck that sprays a post-dip, the family has become savvy at diagnosing problems, as a service call is timely.

Working With Family

Reese could never imagine not working on the family dairy farm. The discussion unfolded about him coming back to the operation, but the family knew 3,000 cows wasn’t going to be sustainable for them to support another family member. This is what spurred the expansion in 2019.

Although for Reese to come back to the farm, there were two requirements—obtain a four-year degree and work for someone else.

“We never had a sit-down meeting, but Dad and I would ride in the pickup, and we’d bring up the conversation and visit about it,” he says. “The biggest key was establishing trust from both sides.”

Three summers during college Reese found somewhere else to work, conducting internships with Royal Farms Dairy, a 6,000-cow dairy in Garden City, Kan., and Dairy Nutrition Management Company based out of Fort Collins, Colo., and WinStar Genetics in Shelley, Idaho, where he learned more about how to ultrasound cows.

“I think it’s super important to go see other dairies and get experience working on other farms,” Reese says, sharing that his experience working for Royal Farms Dairy outlined the importance of being disciplined to maintain details.

“If you want to be an above-average dairy, you have to pay attention to the details. And make sure even the smallest details are 100% every day,” he says.

His father agreed that three internships gave Reese a wealth of experience despite the original plan for Reese to work somewhere else after graduating college. He returned home in December 2021, as the dairy was quickly growing and there was now a spot for Reese.

Growing from milking 3,000 cows in a double-35 parallel to milking 6,200 in a 110-cow rotary, Burnett Dairy saw considerable changes that unfolded while Reese was away at college. The young Wyoming dairy producer shares that most of his ‘real’ education came after graduating college.

“I think that education is super important. I think college gives you a good foundation of science and why we do what we do. But the real education comes after school when you say, ‘Alright, this is what I learned in school, and how can I apply that every day on the farm,’” he says.

Reese shares that it took a lot of humility coming back as the owner’s son and being a recent college graduate.

“I pictured myself spending a lot of time managing cows and less time managing people,” he says, sharing that he understands you cannot be complacent about being good and must be driven to better yourself and your business. He underscores a key to success can be found outside of the farm office and in the barns.

“It’s good to have ownership on the ground with the cows,” he says. “That’s something I never want to lose part of.”

Future Plans

Burnett Dairy doesn’t plan to increase size right now, but they are breaking ground on three new calf barns to give them enough room to raise their beef-on-dairy crossbred calves. The family sees a continued value-added profit line in raising these calves and Reese shares that they plan to raise them all the way to slaughter.

While technology is intriguing to Reese, as his parlor is one of the largest rotaries in the world, he cautions other young producers not to put the cart in front of the horse.

“Don’t adopt the technology before it’s ready,” he says. “The biggest thing that my family looks at before adopting any technology is understanding how it will help our bottom line.”

The best piece of advice Reese offers to new graduates who are returning home to their family dairy is to have patience.

“Be patient with your time, be respectful to of all the years and service that the employees there have put in there,” he says. “You can learn from them, too.”

Glory to God

While managing cows and employees occupy a lot of Reese’s time, he says his biggest key to success is having a very faith-focused family.

“Family and God are our number one priority,” he says. “Being able to work together with family has allowed us to grow as much as we have these last couple of years.”

Reese and his wife, Hannah are expecting their first daughter in August, and they are excited to raise her on a faith-based family dairy farm.

“I loved growing up on my family farm. I was four years old when we started milking cows and I just have so many good memories working on the farm with my father,” he says.

Listen to UpLevel’s podcast with Reese Burnett:

https://open.spotify.com/episode/5a7HIiD4hpCVcsD9zIQyPP?si=2XZR8mAtTDOdtumgFh6WEw

Producers See Room for Improvement When It Comes to Processor Relationships

Mon, 24 Jun 2024 12:52:12 GMT

One vital ingredient for establishing a solid processor – producer relationship is communication. In fact, fluid dialogue between the two is what is needed, especially as dairies grow more sophisticated. Producers truly need to fully understand more than just what happens to their milk once it leaves the farm.

Ed Gallegher, president of Dairy Farmers of America (DFA) Risk Management program, also adds the need for producers to have a strong relationship with someone who can talk about milk price risk and food price risks that are in the marketplace.

“It’s an important aspect to focus on,” he says.

The world pandemic shined a light on this subject, as many dairies were forced to dump their milk. Stories have unraveled of farms losing their milk market overnight. And these dairies know trying to find a processor is easier said than done. Now, as we await a new Farm Bill, it appears that nearly every group tied to dairy has an opinion on the Federal Milk Market Order (FMMO) reform debate.

So, despite billions of dollars in the pipeline for future processing capacity, it was not a big surprise that nearly a third of our survey respondents cited processors and market confidence as one major challenge impacting their ability to expand and grow.

In fact, one evaluator shared, “We just left a milk cooperative that had drastically increased a marketing fee and milk hauling rate over the past two years.”

Near-Term Hurdles

Ten percent of respondents shared that inadequate capacity for processing as a near-term hurdle with one surveyor sharing, “It’s hard to find a milk buyer for a dairy of my size, so I have to plan to wind down operations or change to a different type of farming as I approach retirement.”

New York dairy farmer, Tyler Reynolds, shared with Dairy Herd Management that the more honest producers are with the processors on their future hopes and desires, is a win for all.

“Processors need to plan, too,” Reynolds, who owns Reyncrest Farms, home to 1,400 cows near Buffalo, says.

Roughly half of dairy operators that responded to the survey are not terribly confident in their processor relationship. When asked about their confidence in the future of their existing milk market, the overall response was softer yet.

However, 70% of respondents believed the dairy industry has future opportunities when it comes to innovation and processing. Overall, most operators shared they are not looking to vertically integrate as an avenue to generate market stability.

Download Farm Journal State of the Dairy Industry Report here:

State of the Dairy Industry | Dairy Herd

Mars Announces New $47 Million Sustainable Dairy Plan

Thu, 09 May 2024 13:55:48 GMT

With the goal of cutting greenhouse gas (GHG) emissions by 50% by the year 2030, Mars Inc. has announced the launch of their ambitious sustainable dairy plan, Moo’ving Dairy Forward, that will be backed by a $47 million investment over three years.

Mars says that as part of the Moo’ving Dairy Forward Sustainable Dairy Plan, a new industry-leading collaboration with dairy cooperative FrieslandCampina, one of the world’s largest dairy producers, is set to result in the establishment of the Mars-FrieslandCampina Sustainable Dairy Development Program – an initiative that will dedicate a group of farms to Mars’ dairy supply. To deliver more sustainable dairy, the program will serve as a platform where new practices and innovative technologies can be refined and scaled-up in a focused and accelerated environment, with an ultimate goal of broader adoption across the entire co-op.

“Doing our part to keep our planet healthy is an absolute non-negotiable for us at Mars,” said Amanda Davies, chief R&D, procurement and sustainability officer, Mars Snacking. “But our vision for more sustainable dairy will only become a reality with the support and actions of farmers and our suppliers. Which is why, as part of our Moo’ving Dairy Forward Sustainable Dairy Plan, we’re putting millions of dollars directly back into the pockets of farmers through our contracts to help them make climate-smart changes to the way they farm. Together, I know that we can forge a path that helps address climate change head on and contributes to reshaping our wider industry for a more sustainable future.”

According to the company, Mars will work with a cohort of industry leaders to implement a host of meaningful on-farm interventions focused on critical areas such as enteric methane reduction, efficient manure management and sustainable feed production.

In conjunction with the company’s plan, Mars has launched three pilot “net zero” dairy farms with the DMK Group in Germany. The sites will study and aim to implement new science and technology with an ambition to create a scalable and economically viable pathway to net zero for dairy. According to the company, the five-year project is a first-of-its-kind for the prominent food and pet care and services conglomerate.

To help reduce methane production, Mars is also partnering with Fonterra and Sea Forest to explore sourcing from their SEAFEED™ seaweed food supplement trial. The trial seeks to demonstrate how SEAFEED™ helps reduce the quantity of methane cows generate in digesting their food.

Currently, more than 200,000 cows and 1,000 farms supply dairy for Mars’ iconic billion-dollar confectionery brands like M&M’S® and SNICKERS®.

For more industry news, read:

From the Pipeline: Q&A with Valley Queen's CEO, Doug Wilke

Tue, 07 May 2024 14:19:28 GMT

Name, Title, Organization: Doug Wilke, CEO at Valley Queen in Milbank, SD

Favorite Quote: “The best way to predict the future is to create it.” – Peter Drucker, Management Consultant and Author. Developing and executing long range plans are a priority in my approach to business and the vision for Valley Queen’s future.

Most Valued Books on Business: One of the most valuable books on business, in my opinion, is “Good to Great” by Jim Collins. I read this book at a crucial moment in my career, and it changed my perspective. It provided me with great insights and helped me see things in a new light.

Describe your career path: I began my professional career working at a cheese plant from 1984 to 1995. Over the years, I worked my way up to become a plant manager. In 2001, I was appointed VP of Manufacturing and was responsible for overseeing 15 plants. I then became the VP of Marketing and Product Technology in 2007 and held that position until 2015. 2015 I was appointed Senior VP of Dairy Ingredients, Product Technology, and Business Ventures. The following year, I was fortunate to join Valley Queen as their CEO.

What are your key responsibilities? As the CEO of Valley Queen, I am entrusted with developing strategies and business plans that meet the company’s short-term and long-term objectives. I provide steadfast leadership and guidance to the team, ensuring employee engagement and alignment while fostering a high-performance work culture. I oversee all operations and business objectives, ensuring they yield the desired results and align with Valley Queen’s mission, vision and values instilling confidence in the company’s future.

What is your connection to farming? I grew up on a traditional dairy farm in Wisconsin, where we milked about 60 Holsteins. This upbringing has given me an understanding of milk production at the farm level as well as an understanding of what is important to dairy producers. Currently, at Valley Queen, we have 43 producers, and we share a mutual understanding that we cannot grow and be successful without each other.

What is a leadership lesson that you’ve learned in your career? Playing the long game is crucial for great leaders. Although it can be tempting to go for quick wins, long-term success requires alignment and strategy.

What is your leadership philosophy? My leadership philosophy is based on the belief that part of being a good leader is recognizing that you’re not always the smartest person in the room. As a leader, I focus on building strong relationships with my team members and helping them develop their strengths. By doing so, I create a collaborative environment where everyone is aligned and prepared to face challenges and keep things moving forward.

What is your greatest challenge as a leader? Leaders face many challenges, but one in particular has always been a challenge. —employees often come to work daily without clearly understanding how their work contributes to our goals and whether they are succeeding or failing. If we don’t set clear objectives, expectations, and performance metrics across the org chart, our leadership will only impact those we meet with regularly. We must provide everyone with the same level of clarity to foster ownership and a thriving work culture.

Fairlife Forms New Partnership with Olympic Gold Medalist Katie Ledecky

Thu, 25 Apr 2024 21:26:28 GMT

Serving as the longstanding official protein drink of Team USA, Core Power, a product produced by fairlife, has helped deliver the recovery benefits of milk to Olympians across the country. Earlier this month, the brand announced that it has taken its Olympics support a step further with a multi-year partnership with one of the most decorated female swimmers of all time, and long-time Core Power fan, Katie Ledecky.

According to the company, the Katie Ledecky partnership will leverage her authentic recovery moments to help educate and inspire athletes of all levels around the importance of post-workout recovery. These moments will come to life in Core Power’s “Champion Your Recovery” campaign. The campaign is set to launch across digital and social channels this month and television this summer.

“Whether you’re an Olympic athlete training tirelessly for this year’s games or hitting the gym to progress your own personal fitness journey, we want to make it clear that the nutrition of Core Power can truly benefit everyone,” says Erica Rosskamm, Vice President, Brand Marketing at fairlife. “When we learned that Core Power was already an important part of Katie’s training plan, we knew we found a perfect match. Her accomplishments and dedication alone are inspiring, and the way she prioritizes nutrition recovery can be a beacon for all those who work out.”

While Ledecky is one of the most decorated female athletes of all-time, she has also become famous in the dairy industry for her ability to champion milk. In 2020, the Olympic gold medalist went viral for swimming the length of an Olympic-size swimming pool with a glass of chocolate milk atop her head.

“I thought it would be fun to see if I could swim a lap with the chocolate milk on my head and it was a success,” Ledecky says. “I tried it out and the video that I posted was my very first take with the milk. I tried it a few times before, but without the milk just to be safe.”

Refueling with dairy has been a staple in Ledecky’s training program for years. Thus, this new partnership seems like a natural fit.

“I’ve been swimming my entire life and as I started training more aggressively, I quickly learned how important nutrition and recovery is in preparing for my next training session,” Ledecky says. “Reaching for a Core Power has become a natural part of my routine. It has the protein, electrolytes, and nutrients I need, and it tastes great. I’m excited to officially work with the Core Power team to share how this product has benefited me over the years and inspire all who enjoy fitness to elevate their recovery routine by adding Core Power.”

Watch for Ledecky at the upcoming Olympic Trials in June 2024 at Lucas Oil Stadium in Indianapolis.

For more industry news, read:

Fairlife Breaks Ground on $650 Million Facility in New York

Tue, 23 Apr 2024 13:59:51 GMT

Fairlife is known for its value-added dairy products, such as ultra-filtered milk, protein shakes and lactose-free milk. Within the next few years, the company will soon be producing some of these popular products at its upcoming facility in Webster, N.Y.

Earlier this month, fairlife, owned by the Coca-Cola Co., held a groundbreaking ceremony for its upcoming $650 million milk processing plant in upstate New York. The company plans to break ground in the fall and the plant is scheduled to be operational by the fourth quarter of 2025.

Governor Kathy Hochul and representatives from The Coca-Cola Company were in attendance.

“New York State is one of the best places in the country to build a business. We’re proud to welcome The Coca-Cola Company and fairlife’s dairy production facility, which represents a $650 million investment in Monroe County,” Governor Hochul said. “Coming from a family of Irish dairy farmers, this is personal to me — and soon, it will be personal to thousands of Finger Lakes residents who will have access to jobs and economic opportunity. I’m committed to making strategic investments in New York’s agribusinesses to secure our place as one of the top dairy producers in the nation, create good manufacturing jobs, and move our state’s economy forward.”

According to the company, the new facility will serve as fairlife’s flagship Northeast location and will employee approximately 250 full-time workers.

“Consumer demand for fairlife products is at an all-time high, and a new production facility will allow us to significantly increase capacity and deliver fairlife to even more households across the country,” said Tim Doelman, chief executive officer of fairlife. “As we continue to grow in the Northeast, Webster’s proximity and access to best-in-class dairy farmers make it an excellent location to support our next phase of growth in the region and beyond.”

With dairy being one of the top ag commodities produced in the Empire state, the new facility will provide serve as an additional place for producers to go with their milk.

“We have over 3,000 dairy farmers here, and this is a lifeline for them as well, this gives them hope, and I believe in them,” said Hochul. “I’ve toured so many dairy farms around the state, this is such a big deal to them as well.”

Currently, fairlife has plants located in the U.S.:

Goodyear, Arizona
Dexter, New Mexico
Coopersville, Michigan
Fair Oaks, Indiana

For more industry news, read:

Daisy Brand Makes Plans to Build New Facility in Iowa

Thu, 18 Apr 2024 16:49:08 GMT

Daisy Brand, a well-known sour cream and cottage cheese manufacture based out of Dallas, Texas, has announced its plans to build a new processing facility in Boone, Iowa .

The Boone City Council unanimously approved the request on Monday for the company to seek to seek state funding as part of a $708-million investment that will bring 255 jobs to the community.

“This project will be immensely beneficial to not only the city of Boone, but also Boone County and the entire central Iowa region,” Mayor Elijah Stines said in a city press release. “I am incredibly excited for the positive economic impact this project will bring and the continued success of Daisy Brands and their impeccable line of dairy products.”

According to a statement released by the city of Boone, the town will also make several infrastructure upgrades to support the project, including making improvements to wastewater facilities, upgrading the lift station, creating an additional water reservoir and more.

Currently, Daisy Brand has plants in Garland, Texas; Casa Grande, Arizona; and Wooster, Ohio.

For more industry news, read:

Accelerating Efficiency in the Milk Supply Chain

Wed, 10 Apr 2024 13:00:00 GMT

How can we become more efficient? This is a question that not only dairy producers ask, but also many dairy companies evaluate. Recently, at the 2024 Dairy Farmers of America (DFA) Annual Meeting in Kansas City, Mo., Corey Gillins, chief milk marketing officer for DFA, spoke about accelerating efficiency in the raw milk supply chain.

Through a member survey conducted over a year ago, DFA anticipates fewer member farms in the years to come. Tough financial situations unfolding on farms accelerated the pace of farms exiting, and Gillins noted that more than 500 of their member farms exited in 2023. DFA is now planning to have around 5,100 farms by 2030.

Even with the decline in farm numbers this past year, DFA did not see much of a drop in milk production. Gillins pointed out that they anticipate their member’s milk production to increase at a moderate pace going forward.

“There are several factors that will impact that growth and some of these we’ve been dealing with for a while,” he said.

Gillins pointed out that high interest rates and the low heifer inventory will challenge growth, at least for the short term.

“While they will have some impact on us, we do still anticipate some growth,” he said.

Supply and Demand

A unique story is playing out, especially as the Southwest area, like New Mexico, is decreasing in milk production. Gillins questions where Southeast milk will come from, as previously it would come from areas like New Mexico. This means that milk likely will be transported further distances in the future.

“We’re going to be moving more milk further distances to meet the market demands,” he says.

“And we see some of these dynamics, even within areas if you look at the Mideast area and Michigan, where we’re going to continue to see strong growth in milk supply. And yet, if you just go south into Ohio, we anticipate seeing some level of decreased milk supply.”

According to Gillins, more than 1.5 million lbs. of milk per day is being moved out of Michigan and it is unlikely that number will decrease in the future.

Moving Milk Further Distances

Over the next couple of years, Gillins shares that we are going to see an increased demand for more than 50 million lbs. of milk per day.

“Where’s that all going to come from?” he asks, sharing that some of it is going to come from new growth. “And some of it is going to come from milk moving from current processing facilities to these new plants.”

Gillins alluded that DFA’s future milk supply is looking tight, where they will likely be short on milk at certain times which means milk will have to be transported further distances to fill the needs.

“So how do we drive efficiency in the raw milk supply chain when we’re dealing with those dynamics?” he asks, sharing that a more coordinated marketing and logistics plan will be executed locally.

A milk solids optimization plan is in the works at DFA and Gillins says they are looking at balancing efficiency and strategic transportation. While DFA has managed and tracked balancing costs for many years, they now are looking at that number collectively.

Keeping efficiency in mind, DFA is asking questions, like:

How do we better utilize our existing assets?
Where do we have existing capacity that may not be utilized?
What are the product mixes in these plants and are we getting the highest value of products out of these plants that will improve our balance?

When it comes to transportation, DFA spent more than $880 million getting milk from the farm to the plant in 2023. He shares that DFA’s president and CEO, Dennis Rodenbaugh, encouraged 1% improvements. With transportation, the question is how can costs be better managed?

Key Piece

Gillins shares that technology is going to be a key piece and their partnership with Ever.Ag on software solutions will be beneficial. Currently, 43% of their member’s milk is being picked up utilizing a mobile application. Gillins says while there is a cost savings not to deal with a paper trail, the real benefit comes from the data.

“We will have this from every leg of every route that will help us drive efficiency in our business,” he says, sharing that part of efficiency is to make sure trucks are either picking up milk, hauling milk to the plant, or unloading.

“If it’s sitting and waiting, it’s being inefficient,” he says.

As DFA accelerates its raw milk supply efficiencies, they can identify the bottlenecks that can help the cooperative to become better financially, but also more sustainable, sharing how one plant saw a 40% reduction in CO2 emissions.

“This all leads up to how do we become a best-in-class fluid logistics organization,” Gillins says, sharing that standardization is going to be key to their success. “We have to standardize our processes, from milk dispatch to delivery. We have to standardize our data and how we use it. We have to standardize our practices. As we look at the accelerated pace of change in our industry and we look at the technology that’s becoming available to us, we have the opportunity to transform our business and bring more financial value back to our farmer-owners through our raw milk supply chain opportunity.”

Tillamook County Creamery Association President & CEO Announces Plans to Step Down

Thu, 04 Apr 2024 18:31:57 GMT

Tillamook County Creamery Association (TCCA) President & CEO Patrick Criteser announced he will step down later this year. The TCCA Board of Directors has selected David Booth, TCCA’s current EVP of Brand Growth & Commercialization, to succeed Criteser as President & CEO, with Criteser’s endorsement, and in alignment with the organization’s long-standing succession plan.

Criteser has led the farmer-owned cooperative since 2012. Under his leadership, the beloved regional heritage brand has been transformed into one of the largest, most respected and fastest-growing dairy companies in the country.

“Our vision of becoming a premium, multi-category, national dairy brand has been realized, and the cooperative is optimally positioned to thrive well into the future,” said Criteser. “I have accomplished what I hoped to achieve for the farmer-owners of this amazing cooperative, so I’ve decided that the time is right for this transition. Serving in this role has been the greatest honor of my professional career, and I am absolutely certain that our board has chosen the right person to succeed me in David.”

TCCA Chair of the Board Shannon Lourenzo said, “We are so grateful for Patrick’s incredible leadership these past 12 years. Today, we are a $1.3 billion business, and one in four American households buy Tillamook cheese, ice cream and other dairy products. But we’re just getting started. David is a very talented leader and is someone who is well-equipped to continue the cooperative’s growth, which will further strengthen our farmer-owners, create more jobs and advancement opportunities for our employees, and enable us to continue to positively impact the communities where we live and work.”

Lourenzo said Criteser will remain CEO until later this year, while Booth immediately assumes the role of President. Working closely with the TCCA board and executive leadership team, they will implement a thoughtful transition plan to ensure business continuity and success. Upon Criteser’s departure, Booth will move into the role of President & CEO.

Booth joined TCCA in 2015, and has built top-performing sales, marketing, and category growth teams, forged crucial partnerships with retailers nationwide, and crafted Tillamook’s impressive growth strategy. He has wide experience across the company, including having served as interim CFO on two occasions. He has nearly 30 years of executive experience, including 18 years at ConAgra Foods.

“This is an incredible opportunity to work with our farmer-owners who have built this company with a long-term outlook and a commitment to growing the right way,” said Booth. “We have extremely talented and committed employees in every function and location. Our strong culture and organizational momentum are here to stay, and they will enable us to reach even greater heights in the future.”

Jay Bryant to retire as MDVA CEO, Jon Cowell Named Successor

Fri, 29 Mar 2024 17:23:34 GMT

Jay Bryant, CEO of Maryland & Virginia Milk Producers Cooperative Association (MDVA) announced yesterday he will retire from his position at the end of this year, concluding more than 22 years of leading and 37 years of working for the cooperative. Jon Cowell, current CFO of MDVA, has been named as his replacement by MDVA’s Board of Directors.

“It’s time to let MDVA do what we built it to do – and that is to continuously improve and deliver results back to the family farmers who own us,” said Bryant, who led MDVA through its transition from a raw milk marketing cooperative to a brick-and-mortar cooperative with a respected regional brand – Maola Local Dairies. “It is humbling to look back to where MDVA was 20 years ago and see what we have achieved together by investing in our cooperative. We successfully transformed ourselves to remain relevant in the dairy marketplace and I am confident our nimble approach to business will continue to yield results when I’m gone.”

Bryant’s strategic direction cemented a home for MDVA member milk through the purchase of three additional Consumer Products plants. MDVA’s revenue sales and gross profits have doubled and increased by 150%, respectively, under his leadership. Bryant’s leadership enabled MDVA to become a recognized pioneer on dairy supply chain sustainability – earning more than $77 million for on-farm sustainability initiatives to date.

A native of Boonville, N.C., Bryant grew up on his family’s 70-cow dairy farm. After earning a degree in Agricultural Economics from North Carolina State University he returned to his family’s farm until entering entered the world of milk marketing as a field representative for Carolina-Virginia. By 1997, Jay was named General Manager of Carolina-Virginia, a position he held until the company merged with MDVA in 1999. Jay served as the Director of Milk Marketing at Maryland & Virginia until his appointment as CEO in 2002.

“The Board of Directors extends its deep gratitude to Jay Bryant for guiding us through transformative change and uncertain times like dairy industry consolidation and the pandemic,” said Kevin Satterwhite, President of MDVA’s Board of Directors. “Most importantly we want to praise Jay for his decades of thoughtful leadership. There’s no doubt he will carry a legacy as a transformative figure in the dairy cooperative landscape.”

Jon Cowell joined MDVA as the Chief Financial Officer in 2018. Jon leads all financial aspects of MDVA as well as the Information Technology division. In that time he has renegotiated various banking agreements, monetized redundant assets, led a corporate headquarters relocation, and implemented new payroll systems for both the dairy farmer owners of MDVA as well as employees.

As MDVA’s next leader, Cowell is excited to build upon the foundation that has been established by Bryant and grow the Maola branded business to meet the needs of our customers and consumers. Jon’s vision for MDVA is to grow the Maola branded product portfolio to gain more market share, develop new dairy products and return value back to our member owners. His vision is aligned with the mission of MDVA; to maximize value for our member owners, employees and customers.

Jon most recently served as Vice President and Corporate Controller at Ocean Spray Cranberries, Inc. where he worked from 1996 to 2018. Prior to his time at Ocean Spray, Jon served in various roles at Deloitte & Touche, Kraft Food, and Assured Packaging.

Born and raised in Canada, Jon moved to the United States (Boston) in the late 90s after graduating with a degree in Chartered Accountancy from the University of Waterloo. Jon shares four adult children with his wife, Jennifer.

“Jon brings the vision and leadership necessary to lead MDVA forward into its next phase of growth and success,” said Satterwhite. “As our business becomes increasingly more diversified to meet changing consumer needs, Jon’s strategic insight will help us navigate the challenges and opportunities ahead. Jon has the full support of the more than 900 dairy farmers who own our cooperative.”

DFA Highlights Their One Connected Cooperative Statement at Their Annual Meeting

Mon, 25 Mar 2024 13:06:23 GMT

With the mission of being built on the foundation that they’re stronger together, Dairy Farmers of America (DFA) Board Chair, Randy Mooney, told the attendees at the 2024 DFA Annual Meeting in Kansas City, Mo., that the largest dairy cooperative remains financially strong.

“Now we are in a position to go even further,” he said. “To innovate changing consumer needs to unite the industry around progress. To show the power of theory as a solution to the world’s problems. Secure the future for the next generation. The significance of what we do cannot be overstated.”

Mooney recognized that 2023 was a challenging year for many producers and shared that he saw some of his neighbors experience an added layer of worry as their processors struggled. He noted that was not a problem for DFA.

“You should be proud of what we built - a financially strong, resilient, profitable, well-positioned weather changing business environments and economic challenges because of our focus on ROI strategically invested in innovation,” he said.

In fact, DFA was named the dairy processor of the year in 2023 by Dairy Foods magazine. They also are strong, showing a large global presence, and showcasing products in 60 countries.

“We’re also able to capitalize on innovative breakthroughs and processes packaging. Our own brands are bringing together expertise from all corners, working operations,” Mooney stated, noting that growth can be seen in terms of the number of plants, employees, capabilities and services to customers.

Growth Needed

Mooney said that the time is now to drive forward, and not look back and wish more was done.

“It’s because of our size that we can invest in technology to optimize systems and short-term costs that will lead to long-term sales,” he said. “Moving forward requires us to innovate and the way we operate, connect with consumers the way we serve our farmers.”

Since assuming the role of CEO in 2022, Dennis Rodenbaugh, DFA’s president and CEO, has worked to instill a culture focused on operational performance to deliver value to DFA’s farmer-owners through collaborative actions. Proud of where DFA ranks, including being part of some of the businesses in the world ranking among the top third of the Fortune 500 companies.

“Our teams throughout DFA are driven to performance by a great purpose,” Rodenbaugh said, sharing that he believes that each of the 19,000 employees are an expert in their field and providing solutions to its members.

According to Rodenbaugh, DFA reached profitability again in 2023, noting it was not easy.

“It took all of these leaders in this room and teams across the country to execute a new strategy, new tactics to work as one,” he said.

For 2024, DFA is off to a good financial start, exceeding projected earnings for both January and February, but Rodenbaugh notes that there is a lot of the year ahead and a lot of work to do. He also shared that in recognition of the challenging economics on farms, the DFA Board of Directors voted to distribute an early allocation of a patronage dividend to DFA farmer-owners.

“Our goal is to add value back into our member pockets and into the future,” he said, noting that in November, DFA farmer-owners received a check for their share of a patronage dividend for the first nine months (January to September) of 2023 and that the remaining patronage dividend for the last 3 months of 2023 will be paid in September 2024, in accordance with the normal distribution process.

Rodenbaugh concluded that DFA is 10,000 family farm owners, 19,000 employees, customers, and industry partners strong. He thanked the members in attendance for their dedication and hard work they provide day-in and day-out, 365 days a year and noted that without their dedication and commitment, DFA would not be well positioned to tackle the future ahead.

Midwest Dairy Announces New Chief Executive Officer

Fri, 08 Mar 2024 16:28:40 GMT

Midwest Dairy, the checkoff organization representing over 4,000 dairy farmers in a ten-state region, officially announced that Corey Scott of Marine on Saint Croix, Minn. has been named its new Chief Executive Officer. Scott is an accomplished dairy leader with more than 15 years of food and agriculture experience.

Scott will begin her tenure at Midwest Dairy on March 13, 2024. She will be transitioning from retiring CEO Molly Pelzer, who announced her departure last fall.

“I am excited for this new chapter in Midwest Dairy’s long history of excellent CEO leaders,” says Charles Krause, Midwest Dairy Chairman. “I look forward to working with Corey on the many opportunities we have to serve our family dairy farms.”

Before joining Midwest Dairy, Scott served as the Vice President of Sales and Marketing for Athian and held several leadership positions for over 15 years with Land O’Lakes and its sustainability division, Truterra LLC.

Scott received her Executive MBA and undergraduate degrees from the University of Minnesota and the Carlson School of Business. In 2023, she was selected as one of GreenBiz’s 12 Women Cultivating Sustainable Food Systems and earned a U.S. Dairy Sustainability Award for her work in reducing dairy’s overall environmental footprint.

“I am honored to serve as CEO for Midwest Dairy and work on behalf of dairy farmers across our ten-state region,” Scott says. “I have worked with dairy farmers throughout my career and am always struck by the passion they show for their cows, the environment and our communities. I am incredibly grateful for the opportunity to lead such a respected organization and support the hard work of both staff and farmers.”

Midwest Dairy represents 4,400 dairy farm families and works on their behalf to build dairy demand by inspiring consumer confidence in our products and production practices. We are committed to Bringing Dairy to Life! by giving Consumers an Excellent Dairy Experience and are funded by farmers across a 10-state region, including Minnesota, North Dakota, South Dakota, Nebraska, Iowa, Illinois, Missouri, Kansas, Arkansas, and eastern Oklahoma.

Select Milk Producers Partners with Westrock Coffee to Make New Milk-Based Coffee Product

Tue, 27 Feb 2024 15:00:00 GMT

Select Milk Producers, a Dallas-based dairy cooperative serving dairy producers in the South and Midwest, has recently entered a letter of intent to form a partnership with Westrock Coffee, a leading coffee, tea and extracts provider. In addition to the partnership, the business duo plans to build a new, extended shelf-life processing facility on the same property as Select Milk’s current Littlefield, Texas, facility.

The business duo also plans to produce a unique milk-based, ready-to-drink coffee beverage for consumers to enjoy. Westrock expects to produce and provide the joint venture with coffee extracts and concentrates from its Conway, Ark. facility and Select Milk expects to provide the milk from its Littlefield facility. Westrock and Select Milk anticipate the first product to ship from these lines in the first quarter of 2026.

“As we near completion of the Extract and Ready-to-Drink (RTD) facility in Conway, Arkansas, we made the decision to expand our extract and concentration capabilities so that as we add additional lines in the future, we can do so without having to impact the existing operations of the facility,” said Westrock Coffee’s CEO and Co-Founder, Scott Ford. “In addition, we have expanded our multi-serve bottle capacities by adding cold-chain capability to our facility. Together, these additions better position us to respond to existing customer demand for extended shelf life and multi-serve bottles and ensure we can grow our capabilities in the future without disrupting operations.”

“We expect the joint venture with Select Milk will allow us to meet the needs of current and future customers for coffee-based RTD and concentrate multi-serve formats that include either traditional dairy or plant-based milks,” Ford added, regarding Select Milk.

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South Dakota Governor Supports the State's Massive Dairy Industry Growth

Mon, 26 Feb 2024 16:46:22 GMT

Travel the I-29 corridor and you’ll see an explosion of dairy cattle. As of January 2024, the United States Department of Agriculture (USDA) announced that the total number of dairy cows in South Dakota totals 208,000, up 70.5% since 2019.

To put that into perspective, South Dakota’s dairy herd has added 118,000 cows over the past 12 years.

South Dakota’s governor, Kristi Noem, is committed to supporting dairy’s vital commerce for the state. Governor Noem says that the state’s dairy industry and its producers have created a tremendous impact on their economy.

“South Dakota is a leader amongst the dairy industry. The economic impact of those additional 118,000 cows is nearly $4 billion annually,” GOED Commissioner, Chris Schilken, says. “That is a huge win for South Dakota and its economy. South Dakota is open for business, and producers from across the country are investing here because of our welcoming approach to the dairy industry.”

According to Evan Grong, sales manager for Valley Queen, the three main factors that attract producers to South Dakota are feed, abundant groundwater and dairy processing investments.

Grong recently said that the increase in dairy cow numbers in South Dakota since 2019 as well as the support for continued growth has been a key pillar in the expansion of processing capacity at Valley Queen.

“Valley Queen completed an expansion in late 2019 and we are in the final year of yet another plant expansion,” he said. “These investments in plant capacity would not have been possible without the recent and continued dairy production growth in South Dakota.”

The January 2024 USDA Milk Production Report illustrated that South Dakota was on the positive side of the ledger, jumping 40 million lbs. with 21,000 additional cows year-over-year. The February 2023 USDA Milk Production Report showcased the same kind of growth. South Dakota’s impressive growth continued with a gain of 39 million lbs. with 21,000 more cows.

Dairy Leaders Outline Next Steps in FMMO Hearings

Thu, 15 Feb 2024 17:00:00 GMT

After months and months of Federal Milk Marketing Order (FMMO) hearings unfolding, dairy leaders are still doing what they can to advocate for U.S. dairy farmers.

Recently on a National Milk Producers Federation (NMPF) Dairy Defined podcast, Stephen Cain, vice president for economic policy and market research for NMPF, said the NMPF approach is more holistic and that is what separates their FMMO proposals from processor groups.

“You can’t look at the federal order system having not been updated in 20 years and not address all facets of the industry,” Cain says. “You can’t say in good faith that Class I differentials need to be updated because costs have gone up without also conceding the fact that make allowances need to go up for the same reason.”

International Dairy Foods Association (IDFA’s) chief economist, Mike Brown, says that IDFA believes the dairy industry has fundamentally changed since 2008 when the previous FMMO revisions were made and that the current FMMO pricing formulas need to be amended to reflect new market dynamics.

“While nutritious milk remains the foundation for dairy’s continued growth, today’s U.S. dairy industry is defined by a robust, innovative supply chain that relies more and more on products like cheese, yogurt, dairy-based health beverages and powders, frozen treats and value-added fluid milk to meet ever-evolving consumer demands and generate income for producers and processors alike,” Brown says. “However, today’s pricing policies are out of step with the modern marketplace. As our industry continues to evolve and become more efficient, we must have policies in place that position U.S. dairy for the future without being hamstrung by outdated regulations.”

Now, USDA is considering more than 12,000 pages of testimony as it formulates its plan for FMMO modernization.

Peter Vitaliano, vice president for economic policy and market research for NMPF, stated on the Dairy Defined podcast that no party will get everything they want.

“USDA is going to give each party, particularly each of the major parties, a little something,” he said. “The final result will be a market improvement over what we have now.”

Gregg Doud, president and CEO of NMPF, said that the current formula has cost dairy farmers around 1.2 billion.

“It needs to be changed back to the previous ‘higher-of’ formula that served farmers best,” he said.

Brown says that forty proposals were submitted by stakeholders to USDA for consideration.

“USDA accepted 21 proposals to be included in the hearing process, including two by IDFA—one requesting that USDA update make allowances which are woefully out of date after nearly 20 years of increasing manufacturing costs, and a second proposal on Class I milk pricing that puts more dollars into the pockets of dairy farmers than they would receive under the ‘higher of’ mover while allowing dairy processors to effectively manage price risk”, he said. “Throughout the process, IDFA has remained constructive, offered fact-based testimony, and has continued to encourage USDA to make necessary reforms that allow U.S. dairy producers and processors to compete and win in a global marketplace.”

The next steps include interested parties filing a correction no later than 4:30 ET on April 1. USDA is expected to issue a recommended decision by June 30.

Dairy Herd Management will continue to follow the FMMO ruling decision.

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