Dairy Farmers of America

Dairy Farmers of America Inc. (DFA) is a national milk marketing cooperative in the United States. It is owned by and serves more than 14,500 dairy farmer-members representing more than 8,500 dairy farms in 48 states. DFA markets members' raw milk and sells milk and derivative products (dairy products, food components, ingredients and shelf-stable dairy products) to wholesale buyers both domestically and abroad. Net sales in 2016 were $13.5 billion, representing about 22 percent of raw milk production in the United States.[2]

Dairy Farmers of America
TypeAgricultural marketing cooperative
IndustryAgriculture
PredecessorAssociated Milk Producers, Inc.; Mid-America Dairymen, Inc.; Milk Marketing, Inc.; and Western Dairymen Cooperative, Inc.
Founded1998 (1998)
Headquarters
Kansas City, Kansas
,
United States
Key people
Rick Smith (President and CEO)
Revenue US$13.6 billion (2018)
US$14.7 billion (2017)[1]
US$131.8 million (2016)
Number of employees
6,000
SubsidiariesDean Foods
Websitewww.dfamilk.com

DFA's headquarters were moved to Kansas City, Kansas, in 2017. DFA is divided into seven geographical areas covering the span of the United States. Each Area elects farmer-leaders to serve on DFA's Board of Directors, totaling 49 directors, which govern the Cooperative.

History

DFA was formed in 1998 through the merger of four dairy cooperatives: the Southern region of Associated Milk Producers Inc.; Mid-America Dairymen Inc.; Milk Marketing Inc.; and Western Dairymen Cooperative Inc.[3] Officials from the four cooperatives determined that merging would give the nation’s dairy farmers a fair voice in national policymaking and the ability to address the needs of national customers. Since then, five other cooperatives have become a part of DFA – Independent Cooperative Milk Producers Association, Valley of Virginia Milk Producers Association, California Cooperative Creamery, Black Hills Milk Producers and Dairylea Cooperative Inc.[4][5][6][7] Its headquarters from 1998 until 2017 was near Kansas City International Airport in Kansas City, Missouri.[8]

In 2011, DFA acquired Kemps of St. Paul, Minnesota, and its subsidiaries from HP Hood.[9] In 2014, DFA acquired Oakhurst,[10] and Dairylea Cooperative Inc. merged with the farmer-owned Cooperative. DFA became the sole owner of DairiConcepts in 2015,[11] which was once a partnership between DFA and Fonterra Co-operative Group Unlimited. DFA also acquired Cumberland Dairy, a processor of ultra-pasteurized dairy products, in 2017.[12] In February of 2020 Dairy Farmers of America agreed to buy a “substantial” part of Dean Foods, the largest U.S. milk producer, for $433 million, the company said. As part of the deal, Dairy Farmers of America, an agricultural cooperative that represents roughly 14,000 dairy producers, would acquire 44 of Dean's plants. In May of 2020 that deal was finalized and the acquisition was completed.[13]

Current operations and services

DFA is a farmer-owned company. The Cooperative, which employs more than 6,000 people nationwide, is led by Rick Smith, president and chief executive officer, and DFA's farmer-leader Board of Directors, led by DFA Board Chairman Randy Mooney.

In addition to marketing raw milk, as a dairy foods processor, DFA makes a wide range of dairy products, including cheese, butter, yogurt, ice cream, fluid milk, cheese powder, cream, whole milk powder, sweetened condensed milk, coffee-based beverages and more. The Cooperative has invested in 42 DFA-owned manufacturing plants, joint-venture partnerships with private-label food marketing companies, as well as partnerships resulting in specially formulated ingredients, products and packaging.

DFA offers a variety of member services through its Farm Services Division, which comprises the following businesses: DFA Energy, DFA Farm Supplies, DFA Financing, DFA Grazing, DFA Insurance, DFA Risk Management, Empire Livestock Marketing and Dairy One. The Cooperative also provides members the opportunity to participate in leadership development programs like the Young Cooperator and Emerging Leaders programs.

Brands
  • Borden Cheese
  • Breakstone's Butter (trademark licensed from Kraft Heinz)
  • Cache Valley Creamery
  • California Gold Dairy Products
  • Cass Clay
  • Craigs Station Creamery
  • Dairy Maid Dairy
  • Falfurrias
  • Guida's Dairy
  • Hotel Bar
  • Keller's Creamery
  • Kemps
  • La Vaquita
  • Live Real Farms
  • Oakhurst
  • Plugrá
  • Sport Shake

See also Dean Foods§Products, for brands related to the acquisition of Dean Foods in 2020.

Commodity price manipulation issues

In 2008, the Dairy Farmers of America and two former executives agreed to pay $12 million to settle Commodity Futures Trading Commission charges for attempting to manipulate the Class III milk futures contract and exceeding speculative position limits in that contract.[14]

See also

Notes
  1. "Dairy Farmers of America: global net sales 2018". Statista.
  2. "DFA Reports Record Profits - Dairy Farmers of America". www.dfamilk.com. Retrieved 6 February 2019.
  3. "Farm Horizons: Merger of four co-ops includes Mid-America Dairymen". www.herald-journal.com. Retrieved 6 February 2019.
  4. "Dairylea Members Approve Merger with DFA - Dairy Farmers of America". www.dfamilk.com. Retrieved 6 February 2019.
  5. "St. Louis Post-Dispatch Newspaper Archives". nl.newsbank.com. Retrieved 6 February 2019.
  6. "DALLAS FIRM PLANS TO BUY SHENANDOAH'S PRIDE DAIRY". Retrieved 6 February 2019.
  7. "Archive Search - PressDemocrat.com - The Press-Democrat - Santa Rosa, CA". nl.newsbank.com. Retrieved 6 February 2019.
  8. O'Neill, Lily (June 7, 2017). "Dairy Farmers of America Opens the Doors of its New Kansas Headquarters". The Kansas City Star.
  9. Kansas City Business Journal - Dairy Farmers of America will become owner of Kemps (April 15, 2011), Retrieved Apr. 23, 2015.
  10. "Oakhurst Acquired by a Farmer Owned Cooperative - Dairy Farmers of America". www.dfamilk.com. Retrieved 6 February 2019.
  11. "Dairy Farmers of America acquires sole ownership of DairiConcepts - Dairy Farmers of America". www.dfamilk.com. Retrieved 6 February 2019.
  12. "DFA Acquires Cumberland Dairy - Dairy Farmers of America". www.dfamilk.com. Retrieved 6 February 2019.
  13. "DFA completes $433M acquisition, with feds' blessing". www.bizjournals.com. Retrieved 2020-09-03.
  14. "Dairy Farmers of America settles with CFTC". www.cftc.gov.
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