DFA expands stake in Keller's Creamery

Rural Cooperatives, March-April, 2006

Dairy Farmers of America Inc. (DFA) has acquired all of the ownership interests in Keller's Creamery LP, the nation's second largest manufacturer of butter for retail, food service and industrial uses. Keller's was formed in 2000 as a joint venture between DFA and Frank Otis and Glenn Millar, the former management team of Sodiaal North America Corporation. DFA now becomes the majority owner of the partnership in the butter business and will oversee the management of Keller's warehouse and office operations in Harleysville, Pa., and the butter processing plant in Winnsboro, Texas.

Keller's Creamery has been producing dairy products for more than a century. In 2003, the Texas plant churned cream into more than 100 million pounds of dairy products, including premium and bulk butter, butter oil, nonfat dry milk powder and other dairy ingredients. Mark Korsmeyer, president of DDgs American Dairy Brands (ADB) division, will manage Keller's marketing, sales and manufacturing functions.