October 01, 2016 3:28 AM ET

Food Products

Company Overview of Dairy Farmers of America, Inc.

Company Overview

Dairy Farmers of America, Inc. operates a milk marketing cooperative and provides dairy food processing services. It is primarily engaged in the marketing of its members’ milk. The company also manufactures cheese and butter, and dairy ingredients, as well as offers contract manufacturing services for various brands. It manufactures and markets various consumer brands found in grocery stores in the United States; develops and tests various beverage and dairy food products, including sport drinks, coffee-based flavored drinks, cheese powders and flavors, infant formulas, sour creams, and cheese dips for various brands; and manufactures and sells a line of dairy products, such as nonfat dry mi...

10220 North Ambassador Drive

Kansas City, MO 64153

United States

Founded in 1967

Phone:

816-801-6455

Fax:

816-801-6456

Key Executives for Dairy Farmers of America, Inc.

Chief Executive Officer and President
Chief Financial Officer
Senior Vice President, General Counsel and Secretary
Chief Fluid Marketing Officer and Senior Vice President
Chief Operating Officer of Southwest Area
Compensation as of Fiscal Year 2016.

Dairy Farmers of America, Inc. Key Developments

Dairy Farmers of America to Pay Northeast Dairy Farmers, an Average of $4,000 to Settle a Lawsuit

A federal judge approved a $50 million settlement to be paid by a national dairy marketing cooperative to thousands of Northeast dairy farmers. Dairy Farmers of America will pay an average of $4,000 to about 8,860 farms to settle a lawsuit that accused the marketing group of trying to drive down milk prices. The 2009 class-action lawsuit charged Dairy Farmers of America; its marketing arm, Dairy Marketing Services; and Dallas-based Dean Foods with working together to monopolize the market for raw milk in the Northeast. Dean Foods agreed to a separate $30 million settlement in 2011. The deals cover farmers in Delaware, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and the District of Columbia. The amended settlement creates and funds an independent advisory council member for four years to review the financial records of the Dairy Farmers of America and Dairy Marketing Services. The council member also will serve as an advocate within the farmers' group for higher pay prices and farmer equity. It also establishes and funds a farmer ombudsperson for five years to investigate any complaints as well as creates an audit committee to monitor DFA's compliance with the settlement. Dairy Farmers of America also has agreed to non-retaliation safeguards for dairy farmers and protocols to help them leave the group without penalty. The settlement is an excellent result for the farmers in terms of monetary relief and efforts to address anti-competitive concerns.

Arla Foods UK plc Forms Joint Venture with Dairy Farmers of America, Inc. to Construction Small Dairy Plant in US for Cheddar Cheese Production

Arla Foods UK plc has entered into a joint venture agreement with Dairy Farmers of America for the construction of a small dairy plant in the US for cheddar cheese production. Part of the JV agreement is the construction of a production site in the western part of New York State, US, where the eight farms supplying the raw milk are placed. The farmers are members of DFA and will supply approximately 70,000 tons of raw milk annually. The joint investment for the JV is $58 million of which Arla covers 20% or $11.6 million. The JV will be owned 70% by DFA, who also holds the management role, 20% by Arla and 10% by the eight farmers who supply the milk. The construction of the site will begin in the fall 2016 and production is expected to start in the fall 2017.

Dairy Farmers of America Announces Earnings Results for 2015

Dairy Farmers of America announced earnings results for 2015. For the year, the company reported net income of $94.1 million compared to $43.1 million for 2014. The increase was attributable to strong performances from the company’s commercial operations and affiliates, as unit sales were up and margins improved. The company’s net sales totaled $13.8 billion compared to $17.9 billion in 2014. This decrease is primarily a result of lower milk prices.

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