Dairy Processing - April 2021 - 24

We are
always
analyzing the
industry and
where the
opportunities
are for
growth in
new product
innovation.

base of customers - individuals that we
just sell raw milk to like a large cheese
manufacturer, or customers that are buying
ingredients from us that we partner with on
the commercial side of the business. For
example, a large candy manufacturer, where
our ingredients go into their chocolates. Our
customers are vast and broad from PepsiCo
to Starbucks. We have customers, and we also
produce products ourselves. Basically, any
dairy product that you can think of, we can
either provide the milk or ingredients for, or
we can probably produce.
We sell our farmer's raw milk to one of the
world's largest cheese manufacturers. They
make the cheese and then sell it to pizza chains
across the country. Or we deliver our members'
milk to one of our factories that makes
provolone cheese, and then we sell that cheese
to Jimmy John's. We sell our whole milk powder
to Nestlé, and then they use that ingredient in
their products.
So we're everything - from selling raw milk
to a customer who processes it on their own, to
us processing and either selling it to a different
customer, or producing it and selling it under
one of our brands.

24 APR 2021 | DAIRYPROCESSING.COM

Dairy Processing: What was the impetus of
acquiring assets of Dean Foods?
Kristen Coady: After Dean Foods suffered
significant losses related to business decisions, the
processor initiated Chapter 11 in November 2019.
As Dean is the largest dairy processor in the
country and a significant customer of DFA, it was
important to ensure continued secure markets
for our members' milk with minimal disruption
to the U.S. dairy industry. So, DFA stepped in and
acquired a substantial portion of Dean's assets
and businesses to make sure that we had a longterm viable home for our members' milk. And
that's really what drove the decision.
Dairy Processing: Has the pandemic hindered
production in any way?
Kristen Coady: I think we really saw a shift
in dairy usage during COVID that we're still
seeing. At the onset, with foodservice shutting
down, there was a shift to an increase in dairy at
retail. And that's a trend we're continuing to see,
that dairy purchases at retail are higher than last
year. So, it really has been about demand where
dairy has shifted.
DFA member-owned Woods Dairy in Lodi, Calif.



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Dairy Processing - April 2021

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