DFA assumes responsibilities of Cal-West Dairymen, Inc.

DFA’s Western Area Council acquires new members
January 26, 2009

Kansas City, Mo. - Dairy Farmers of America, Inc. (DFA), the nation’s leading milk marketing cooperative, is proud to assume the responsibilities of marketing the milk of Cal-West Dairymen, Inc. members. Milk from Cal-West Dairymen, Inc. has been added in to DFA’s Western Area’s milk supply.

According to Glenn Wallace, chief operating officer of DFA’s Western Area, the arrangement allows both DFA and Cal-West Dairymen, Inc. to market milk more efficiently.

“Working together benefits all dairy producers,” said Wallace. “By comingling this milk we are saving on transport and marketing costs."

Prior to the agreement with Cal-West Dairymen, Inc., DFA’s Western Area marketed 6.1 billion pounds of milk annually with 320 members. Through the agreement, 11 former Cal-West Dairymen, Inc. members will add 185 million pounds of milk to the Western Area supply. In addition, Cal-West Dairymen, Inc. members also will be offered programs and services including professional on-farm field service, quality assurance and custom lab services.

“We are excited to work with Cal-West Dairymen, Inc.,” said Wallace. “They are cooperatively minded and this is a strong group of quality dairymen wanting to work together.”

Cal-West Dairymen, Inc., founded in 1985, was based out of Walnut Creek, California, and marketed 185 million pounds of milk annually. DFA now manages the marketing and administrative functions of Cal-West Dairymen, Inc. This reduces negative competition in the California marketplace which has previously caused low milk prices.