California Dairies Inc. (CDI), Visalia, Calif., and Kansas City, Kan.-based Dairy Farmers of America (DFA) announced the creation of a marketing agency in common to benefit and bring efficiency to both cooperatives’ customers and members.
“Given the significant marketing and regulatory challenges that we’ve seen in California over the last few years, there was a mutual desire to reduce supply chain costs and create additional value and stability for our customers,” said Andrei Mikhalevsky, president and CEO of CDI. “We would also like to help preserve the existing processing asset base in the state.”
With the establishment of a marketing agency in common, DFA and CDI said they will combine the raw milk marketing and transportation efforts for both cooperatives in California. The marketing agency in common also will allow both cooperatives to create market stability, milk balancing and enhanced customer service as part of short- and long-term strategies.
“Our organizations have worked closely over the past decade as the dairy industry in California, the U.S. and the world has become increasingly dynamic,” said Dennis Rodenbaugh, executive vice president of DFA and president of Council Operations. “We have similar goals and see tremendous opportunities with our two cooperatives working together in an increasingly close partnership.”