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As the world’s largest dairy processor (by intake), Dairy Farmers of America (DFA) processes the milk on behalf of 13,000 dairy farmers across America. DFA was formed in 1998 through the merger of four dairy cooperatives who believed 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.
Today, the co-op markets its members’ milk nationally and internationally and has joint ventures and partnerships with several food and processing companies including Glanbia Plc.
DFA’s sales totalled $13.5bn (€12bn) while net profit was $131.8m (€114m) in 2016. In 2016, it processed and marketed 27bn litres of milk for both members and others through the co-ops consolidated businesses, which represent approximately 29% of the total milk production in the United States. It is investing heavily in processing and last year acquired its partner Fonterra’s 50% share in DairiConcepts, a manufacturer of cheese and dairy ingredients for $128m.
It also announced plans to construct a new cheese and whey plant in Michigan with Glanbia Plc, the largest maker of American cheese in the world. This project is driven by Michigan’s growing milk supply. Two other co-ops, Foremost Farms USA and Michigan Milk Producers Association, are joining DFA and Glanbia in this partnership, where Glanbia will own 50% of the joint venture. Upon completion, the plant is projected to process 3.6m litres of milk per day. This plant will add 30% to Glanbia’s US processing capacity. Commissioning is expected to take place in the second half of 2019.
DFA is also entered into a joint venture with Arla that includes the construction of a $58m cheddar cheese plant in New York. The joint venture will be 70% owned by DFA, 20% by Arla and 10% by eight farmers who supply the milk. Arla sees investing locally and using US milk as a better solution as the US market has a restricted import quota system for cheddar. Arla wants to double its revenue from consumer sales by 2020 compared to 2014 levels.
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