Dairy Farmers of America (DFA) reported this week that its 2015 net income more than doubled from the previous year, climbing to $94.1 million on net sales of $13.8 billion. That’s despite the fact that net sales actually declined 23% from 2014.
The decline in net sales in 2015 is primarily due to lower milk prices, which averaged $17.08/cwt this year compared to $23.97/cwt in 2014.
Cash distributed to members totaled $35 million in 2015 compared to $28 million in 2014. The $35 million in 2015 was divided into $20 million in equity retirements and $15 million in allocated patronage dividends.
“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,” says Rick Smith, DFA president and CEO.
Last year, DFA also acquired remaining ownership interest in DairiConcepts, a cheese and dairy manufacturer, which had been previously jointly owned with Fonterra. The co-op also broke ground this year on a state-of-the-art whole, skim and nonfat dry milk powder plant in Garden City, Kan. It is a partnership between DFA and a group of member farms in southwest Kansas.
And just this week, it also announced a partnership with Arla Foods to build a small cheddar plant in western New York. DFA also launched its first ever branded product: Live Real Farms Energy Drink.