Alto eyes alliance with Iowa co-op

0 Comments | Milwaukee Sentinel, Feb 2, 1995 | by LEE BERGQUIST

Alto Dairy Cooperative of Alto and an Iowa dairy co-op said Wednesday they are eyeing ways in which they can work together to reduce operating costs, but for now executives at both co-ops said they are not actively considering a merger.

Alto and Swiss Family Farms Cooperative of Davenport said they decided to formalize a four- year-old working relationship, in which Alto supplies fluid milk to Swiss Family.

While they will maintain separate operations, the co-ops will implement unspecified joint ventures and develop ways to avoid duplication at their plants and in the sale of their products. Alto specializes in producing cheese, while Swiss Valley specializes in selling and marketing fluid milk.

The announcement follows the merger last year of Wisconsin Dairies Cooperative of Baraboo and Milwaukee-based Golden Guernsey.

"This is not a surprise," said Robert Cropp, a University of Wisconsin Madison dairy economist.

Co-ops must reduce operating costs, to compete with co-ops and milk plants in the South and West that now produce milk at a lower cost, Cropp said.

The two co-ops have combined annual sales of $585 million, and represent 1,900 dairy farmers in Wisconsin and Iowa.