DFA, Dairylea solidify pact; Black Hills Milk to merge - Newsline

Rural Cooperatives, Sept-Oct, 2002 by Patrick Duffey

Dairy Farmers of America (DFA), City, Mo., has expanded the scope of its joint venture relationship with Dairylea Inc., a dairy bargaining/service cooperative at Syracuse, N.Y. Dairylea has become DFA's first cooperative member by making an initial $3 million investment in DFA and agreeing to future retain contributions. Two Dairylea members--Clyde Rutherford and Sandy Staufer--have been placed on the DFA board, giving Dairylea a voice in DFXs policy, and marketing decisions.

For the past several years, Dairylea has been operating Dairy Marketing Services, a marketing venture within DFA?s Northeast Council. DFA markets Dairylea's 5.5 billion pounds of annual milk production. The latest action leaves the door open to a future merger.

Dairylea, which also offers nine other businesses services--including insurance and financial services to its 2,000 dairy farmer members, has combined annual sales of close to $1 billion.

In another action, the 43 members of Black Hills Milk Producers at Rapid City, S.D., agreed to merge with DFA. Black Hills Milk members produce 70 million pounds of milk annually. Manager Mike Paulsen will continue to provide marketing and member services. Bob Verhuizen, Black Hills chairman, was elected to a 2-year term on the DFA Central Area Council.