Dairy Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Dairy Foods logo
  • NEWS
    • DAIRY REGULATIONS
  • PRODUCTS
    • New Products
    • Butter
    • Cheese
    • Cultured Dairy
    • Frozen Desserts
    • Ice Cream/Novelties
    • Milk
    • Non-Dairy Beverages
    • Sales Data
    • Whey, Milk Powder
    • Dairy Alternatives
  • INGREDIENTS
    • Cocoa
    • Colors/Flavors
    • Cultures/Enzymes
    • Fiber
    • Gums, Stabilizers, and Texturants
    • Inclusions
    • Omegas/Lipids
    • Prebiotics
    • Probiotics
    • Sweeteners
    • Other
  • OPERATIONS
    • SUSTAINABILITY
    • Equipment
    • Processing
    • Packaging
    • Food Safety & Sanitation
    • Membrane Technology
  • MEDIA
    • Dairy Foods TV
    • Podcasts
    • Webinars
  • DIRECTORIES
    • Buyers Guide
    • Dairy Plants USA
  • MEMBRANE FORUM
  • MORE
    • Associations
    • Dairy Foods' News & Views Newsletter
    • Blogs
    • Case Studies
    • Classifieds
    • Custom Content & Marketing Services
    • Dairy Foods Store
    • Market Research
    • Supplier Spotlights
    • Tradeshows and Events
    • Strategy Guides
  • AWARDS
    • Dairy Plant of the Year Award
    • Breakthrough Award
    • Dairy Processor of the Year
  • EMAGAZINE
    • eMagazines
    • Archive Issues
    • Contact
    • Advertise
    • SIGN UP!
    • Columnists
    • Dairy 100
    • State of the Industry Report
    Dairy Processor News

    Westby Cooperative Creamery sees new era of sales growth and product development

    By James Carper
    September 12, 2013

    This is not what you would call an overnight success. When it was established in 1903, the farmer-members of Westby Cooperative Creamery churned out 67,000 pounds of butter. Forty-one years later, the creamery started making cottage cheese (for Bowman Dairy in Chicago). By 1992, the co-op rolled out its first branded product.

    When the ball in Times Square dropped to signal the start of a new millennium, things finally began to heat up for this cheese and cultured dairy products processor based in Westby, Wis. Growth has occurred deliberately and regularly. From 2004 to 2012, Westby more than tripled its annual revenues from $15 million to $50 million. At the same time it began producing new products: yogurts (2005), organic dairy foods (2006), cream cheeses (2007) and Greek yogurts (2011).

    Westby Cooperative Creamery is not a well-known name to the general public. Its Westby branded products are sold primarily in Wisconsin and Minnesota. But food processors and other dairy brands know this vertically integrated dairy products cooperative. Westby derives over three-quarters of its sales from contract manufacturing of private label and ingredients products, and sales to foodservice institutional customers. At one point in its history, it made cottage cheese for Dean Foods, 500-pound barrels of cheese for Borden and 68-pound packs of butter for Uncle Sam.

    Today, Westby co-packs cheeses and cultured dairy foods for dairy brands in the Midwest and California. It sells yogurt to food manufacturers who add it to their salad dressings. Westby’s dry curd cottage cheese ends up as an ingredient in lasagna. Local school boards, restaurants and hospitals like the fact that Westby products are made in Wisconsin.

    Dairy farmer and Board President Loren Oldenburg and General Manager Pete Kondrup are leading Westby Cooperative Creamery into a new era of revenue growth and product development. Revenues increased to $50 million in 2012 (over $30 million in manufactured dairy food product sales and nearly $20 million in fluid milk sales). Last year the creamery manufactured nearly 25 million pounds (a record) of dairy foods, including cottage cheeses, sour creams, dairy dips, yogurts, (butter is now out-sourced) cheese curds, soft cheeses and hard cheeses.

    “We’re a premium product and a local manufacturer. That resonates with some retailers and food co-ops,” said Retail Sales Representative Kevin Gittens.

    The dairy co-op

    The co-op members (called “patrons”) farm small dairy herds throughout Wisconsin and Minnesota, with many in and around the city of Westby and Vernon County, about a two-hour drive northwest of Madison. A typical farm has 30 to 100 cows, said John Schedivy, a field services manager. At the end of 2012, the cooperative’s membership included 160 local family dairy farms. By August 2013, there were 170. The members produced nearly 125 million pounds (a record in 2012) of conventional and certified-organic fluid milk. All milk supplied is rBST-free.

    The organic farms are certified by several different organic organizations, with the creamery-plant certified by the Midwest Organic Services Association, Viroqua, Wis. The Cornucopia Institute, a Wisconsin-based public interest group that promotes family farming and sustainable and organic agriculture, rates the co-op highly. It gives the co-op an “excellent” rating of four cows (out of five).

    The seeds for the record year in 2012 were sown a decade ago. Just before celebrating its 100th anniversary, the board of directors had to make some hard decisions about the viability of the cooperative and figure out where its future lay.

    In 2002, Westby applied for and later received a Value-Added Producer (VAP) grant of $37,200 from the U.S. Department of Agriculture to analyze marketing opportunities. The co-op identified nine new product lines. The following year, the co-op used a $438,000 grant to provide the working capital needed to develop these products, including yogurts. Other grants in later years, ranging from $150,000 to $300,000, helped the co-op increase market share in the yogurt industry, expand production of farmer’s cheese and develop organic cottage cheese and sour cream products.

    The USDA says the VAP program funds projects that “have aided in the creation of new economic opportunities for farmers and communities looking to keep a greater share of retail food dollars at home by processing and packaging them locally, rather than shipping commodities elsewhere for processing.”

    Around 2005, the co-op was seeing increased consumer demand for organic products, including dairy foods and beverages. Farmers, including Westby members, were converting their dairies to organic operations. Faced with a potential loss of membership, the board in 2006 voted to admit organic dairy farmers. That has proven to be a boon to membership and revenues. Most of Westby’s hard-cheese production is in organic product for co-pack partners.

    “Westby is able to respond to fast-emerging market trends,” said James Robson, CEO of the Wisconsin Milk Marketing Board, Madison. “Under the leadership of general manager Peter Kondrup and an involved board of directors, the organization is well positioned to play an important role for farmers in western Wisconsin for years to come,” Robson said.

    Brad Legreid, executive director of the Wisconsin Dairy Products Association (WDPA), knows Kondrup well. (Association members elected Kondrup president in July.) Legreid said Kondrup provides “high-level visionary leadership” to the co-op and has a “quiet and humble” management style.

    Award-winning products

    A point of pride with the co-op is that it is the only cottage cheese processor in Wisconsin. The creamery also makes sour creams, dairy dips, yogurts, hard cheeses and cream cheeses. It no longer makes butter; that product is outsourced. Westby manufactures these products in a small facility about a mile from the corporate headquarters and distribution center.

    Westby-brand products won three first place awards at the 2012 WDPA’s World Dairy Expo Championship Dairy Products Contest for 2% low-fat small curd cottage cheese, sour cream, and French onion dairy dip. It snared a fourth award (second place) for its roasted red pepper dip.

    The majority of the co-op’s revenues come not from sales of Westby-branded products, but from co-packing, sales of ingredients and from foodservice/institutional sales. Westby is an efficient processor that can handle small-batch production runs. It can make up to a dozen different products a day. This agility has helped the company secure contract manufacturing clients around the nation. The creamery ships products to both coasts; a distributor puts Westby-made dairy products on cruise ships in the Caribbean.

    The owner of a start-up yogurt brand said he selected Westby because shipping product to either coast from Wisconsin is inexpensive. The client (who requested not to be identified) also cited the co-op’s high-quality organic milk as a factor. A third factor in choosing the cooperative as a manufacturing partner is that “we like them as people,” he said.

    The creamery’s dairy products also are available in bulk sizes (5-, 30- and 40-pound containers and 55-gallon drums) for foodservice and industrial customers. Other dairy brands source ingredients (like dry curd cottage cheese or yogurt) for use in their product manufacturing. The creamery’s cheeses end up in blintzes, lasagnas and salad dressings.

    Though Westby is hardly a national brand, it is a local favorite. The small retail cheese store in front of the plant on Main Street in Westby (population of 2,200) is a preferred-stop for locals and tourists to buy cheese curds, cheeses and other fresh-from-the-factory cultured dairy foods. Customers live by the co-op’s slogan: “Take home country goodness!” Westby also sells products from its Country Goodness online store (www.westbycreamery.com). 

    Sales, marketing and advertising

    Westby taps its Wisconsin connections for sales and marketing support. The Wisconsin Milk Marketing Board has been a good supporter, said the co-op’s Mark Rutlin, manager of sales and business development.

    WMMB partners with Westby by providing cost-sharing funds to conduct in-store demos. Many of Westby’s products carry the Wisconsin cheese logo, signifying that the product was made in Wisconsin. The co-op has also participated in WMMB’s trade advertising allowance program.

    “Westby has a strong reputation among retailers for producing quality products,” said WMMB CEO Robson. “They’re a leader in cottage cheesemaking in Wisconsin.”

    Rutlin represents the co-op at trade shows, including the Wisconsin Restaurant Association and events put on by the Institutional Food Market Coalition, which promotes locally grown produce and locally made food products. Consumers’ interest in where their food comes from and how it is manufactured has benefitted Westby.

    To show how fresh their food is, some retail customers promote the concept of food-miles (the distance food travels from the source to the store). The independent Wisconsin-based chain Metcalfe’s used a circular this summer that promoted its proximity to its suppliers, including Westby.

    The cooperative’s farmers say they take pride in seeing Westby branded products on store shelves. These dairy foods are the end result of the hard work of dairy farming. Some months the arithmetic of sales minus costs of sales does not work in favor of farmers. They seem to shrug it off.

    “Of course it is hard, but what isn’t?” asked Kay Yanske, a farmer and secretary/treasurer of the co-op.

     Board president Oldenburg describes the rewards of dairy farming in what sound like postcard images: sitting on the porch at the end of the day and watching the sun set over the farmstead. There’s country goodness in that, too.   

    KEYWORDS: cheese processor cheesemaker dairy processor news organic dairy products yogurt processors

    Share This Story

    Looking for a reprint of this article?
    From high-res PDFs to custom plaques, order your copy today!

    Jim Carper is the former editor-in-chief of Dairy Foods.

    Recommended Content

    JOIN TODAY
    to unlock your recommendations.

    Already have an account? Sign In

    • Lifeway Organic Kefir in different flavors inside a refrigerated grocery shelf.

      Dairy Foods names Lifeway Foods 2025 Processor of the Year

      Lifeway Foods donates $10,000 to wildfire victims,...
      Dairy Processor News
      By: Brian Berk
    • Two female farmers are standing in a field, holding a large milk canister, looking at several cows at dairy farm.

      Honoring Women Leaders Shaping the Dairy Industry

      For the fourth consecutive year, Dairy Foods is proud to...
      Innovation
      By: Barbara Harfmann
    • Main feature for State of the Industry with dairy products album cover with a gradient circular--patterned backgorund.

      2025 State of the Dairy Industry

      Welcome to the 2025 State of the Industry report. For...
      Dairy Foods & Beverages
    Manage My Account
    • eMagazine Subscription
    • Dairy Foods News & Views Newsletter
    • Online Registration
    • Manage My Preferences
    • Subscription Customer Service
    • Connect with Dairy Foods

    More Videos

    Popular Stories

    Close up of a whipped frozen dessert with a light green color.

    The keys to high-protein dairy formulations

    A row of Frios Gourmet Pops with a tie dye pattern as a background.

    How Frios Gourmet Pops delivers happiness

    Grilling foods

    Dairy’s Enduring Moment: Why Resilience and Renewal Define Today’s Dairy Story

    Nominate your product for the 2026 Dairy Foods Product of the Year!

    Products

    Probiotic Ice Cream: Science and Technology

    Probiotic Ice Cream: Science and Technology

    See More Products

    Outlook Report: Women in Dairy

    Related Articles

    • Westby Cooperative Creamery reports growth and profit at annual meeting

      See More
    • Westby Cooperative Creamery sour cream pouch

      Westby Cooperative Creamery unveils squeezable sour cream pouch

      See More
    • Westby Cooperative Creamery acid whey room

      Westby Cooperative Creamery invests $1 million to process acid whey

      See More

    Related Products

    See More Products
    • yogert and other.jpg

      Development and Manufacture of Yogurt and Other Functional Dairy Products

    • GlobalData_Consumer.jpg

      Milk (Dairy & Soy Food) Market in the United States of America - Outlook to 2024: Market Size, Growth and Forecast Analytics

    • GlobalData_Consumer.jpg

      Top Growth Opportunities: Dairy & Soy Food in the US

    See More Products

    Related Directories

    • Westby Cooperative Creamery

    • Enzyme Development Corp.

      EDC offers an extensive selection of specialized enzymes for lactose removal, accelerated cheese aging, and EMC production. These include high-quality lactases, proteases, and lipases, ensuring effective, natural solutions tailored to the needs of dairy processing and innovation.
    • Rowlands Sales Co. Inc.

      Rowlands is a worldwide full service stocking supplier of new and reconditioned machinery, systems design, transportation, installation, integration, troubelshooting, maintenance and repair for the food, dairy, beverage, biopharm, personal care and biofuel industries.
    ×

    Stay ahead of the curve. Unlock a dose of cutting-edge insights.

    Receive our premium content directly to your inbox.

    SIGN-UP TODAY
    • RESOURCES
      • Advertise
      • Contact Us
      • Directories
      • Store
      • Want More
    • SIGN UP TODAY
      • Create Account
      • eMagazine
      • Newsletter
      • Customer Service
      • Manage Preferences
    • SERVICES
      • Marketing Services
      • Reprints
      • Market Research
      • List Rental
      • Survey/Respondent Access
    • STAY CONNECTED
      • LinkedIn
      • Facebook
      • YouTube
      • X (Twitter)
    • PRIVACY
      • PRIVACY POLICY
      • TERMS & CONDITIONS
      • DO NOT SELL MY INFORMATION
      • PRIVACY REQUEST
      • ACCESSIBILITY

    Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

    Design, CMS, Hosting & Web Development :: ePublishing