Dairy Farmers of America (DFA) is breaking ground on a whole milk powder plant in Fallon, Nev. to bolster its ability to produce dairy ingredients specifically for global customers.
The announcement was made this afternoon by Rick Smith, DFA president and CEO, at the co-op’s 14th annual meeting here in Kansas City.
When completed, the plant will take in two million pounds of milk per day and be capable of producing 250,000 pounds of whole milk powder. But it will not rely solely on whole milk powder exports. If those sales are not there, the plant is capable of producing skim milk powder as well.
Smith also reported that 13% of DFA sales are now for products sold in export to 42 countries around the globe. This mirrors U.S. exports, which are also 13% of milk solids produced in the United States.
DFA reported net sales of nearly $13 billion in 2011, up from $9.8 billion in 2010. The gains came primarily from higher dairy prices. Net income was a reported as a $36.7 million loss in 2011, compared to a $43.7 million gain in 2010.
The net income loss was primarily due to a June 1 exchange of 22% ownership interest in HP Hood for 100% ownership in Kemps, which was a wholly-owned subsidiary of Hood. As part of the exchange transaction, DFA recorded a loss of $77 million, according to its 2011 financial report. The cooperative did return $48.6 million to members in 2011, roughly the same amount as in 2010.
In 2011, DFA directed the marketed of 63 billion pounds of milk from both members and non-members. That volume represents roughly one-third of U.S. milk production last year.