Associated Milk Producers, Inc. announced $17 million in profits in 2009 on net sales of $1.367 billion at its 40th annual meeting in Bloomington, Minn., this week. Though sales decreased $346 million from last year, profits swung more than $32 million from the nearly $15 million loss reported in 2008.
"Earnings were bolstered by seasonal, fourth-quarter sales of consumer-packaged products such as butter quarters, shredded cheese, natural chunks and processed cheese slices…. Those sales contributed to earning of $17 million--$9 million from operations and $8 million from inventory valuation,” says Ed Welch, AMPI president and CEO.
The AMPI Board also revolved out $11 million in owner equity months ahead of schedule to get more dollars into producer-owner hands faster.
AMPI has 3,200 member farms which produce six billion lb. of milk annually. Despite dismal milk prices in 2009, member farms increased milk output 10% last year. As a result of that increased milk flow, AMPI increased its consumer-packaged cheese 23%, whey 7%, consumer-packaged butter 4% and bulk cheese 2%.