DFA reports 2015 financial results

March 22, 2016

At the Cooperative’s Annual Meeting today, 
Dairy Farmers of America (DFA) officials reported net income of $94.1 million, compared to $43.1 million for 2014. The increase was attributable to strong performances from DFA’s commercial operations and affiliates, as unit sales were up and margins improved.

DFA’s net sales totaled $13.8 billion for 2015, compared to $17.9 billion in 2014. This decrease is primarily a result of lower milk prices. The all U.S. milk price averaged $17.08 per hundredweight in 2015 compared with $23.97 in 2014.

“Providing value to our dairy-farmer members is the focus for everything that we do at DFA,” said Rick Smith, president and chief executive officer. “In 2015, we had a successful year and took strong action to support key strategic initiatives — most notably in the areas of assuring supply chain integrity, growing our commercial businesses and driving performance through innovation.”

In 2015, DFA directed the marketing of 62 billion pounds of milk for both members and others. This represented approximately 30 percent of the total milk production in the United States. The average 2015 price paid to members per hundredweight of milk was $17.18 compared with $24.17 in 2014.

Cash distributed to members in 2015 totaled $35 million compared to $28 million in 2014. In 2015, members received $20 million in equity retirements and $15 million of allocated patronage dividends.

In 2015, DFA expanded its commercial investments by acquiring the remaining ownership interest in DairiConcepts, an innovative cheese and dairy manufacturer, which it previously was invested in as a joint venture partner. DairiConcepts plays a key role in DFA’s strategy to further grow its ingredients division and extend its global marketing outreach. Additionally, DFA broke ground on a new dairy ingredients plant in Garden City, Kan. The state-of-the-art plant will produce whole, skim and nonfat dry milk powders, as well as cream, and is a partnership between DFA and a group of member farms in Southwest Kansas.

Finally, for the first time in the Cooperative’s history, DFA launched a new brand and product from scratch. Live Real Farms Energy Drink incorporates the nutrition of dairy into an innovative product geared toward millennial families.