The Dannon Co. Inc., White Plains, N.Y., forged a new and unique relationship with McCarty Family Farms, Bakersfield, Calif., to supply the milk for Dannon’s Fort Worth, Texas, plant. Historically, Dannon has relied exclusively on a co-op for fresh milk.
Dannon has been looking for alternative ways to source milk to reduce the impact of the volatility of the price of milk and continuously improve on environmental sustainability.
“The volatile swings in the price of milk have on many occasions impacted our business planning process and other functions,” says Michael Neuwirth, senior director of public relations for Dannon. “Furthermore, seeking ways to continuously reduce Dannon’s environmental impact has been limited based on the indirect relationship between our company and dairy farmers through a co-op.”
As part of the relationship, McCarty Family Farms’ fourth-generation dairy farmers in northwest Kansas will be providing milk exclusively and directly to Dannon.
Both Dannon and McCarty Family Farms sought this relationship to overcome some of the pricing stability issues and lack of direct relationship between farmer and customer.
This is a win-win situation for both companies, according to a Dannon press release. For starters, McCarty Family Farms and Dannon provide improved financial stability for one another during periods of volatility in milk pricing. Secondly, Dannon and McCarty Family Farms share ambitious goals for reduction of impact on the environment, which can now be implemented based on the direct collaboration.
The specifics of the relationship and agreements are confidential, however, this is a multi-year commitment that is expected to bring benefits to both parties.
“We’re not in a position yet to talk about some of the environmental projects we’re going to be working on together at this point in time, but we’ll let you know as soon as possible once we’re ready to speak publicly about them,” says Neuwirth. “Needless to say, we’re very excited about them.”