Dairy Farmers of America Inc. is a national milkmarketing cooperative in the United States. It is owned by and serves more than 14,500 dairy farmer-members representing more than 8,500 dairy farms in 48 states. DFA markets members' raw milk and sells milk and derivative products to wholesale buyers both domestically and abroad. Net sales in 2016 were $13.5 billion, representing about 22 percent of raw milk production in the United States. DFA's headquarters were moved to Kansas City, Kansas, in 2017. DFA is divided into seven geographical areas covering the span of the United States. Each Area elects farmer-leaders to serve on DFA's Board of Directors, totaling 49 directors, which govern the Cooperative.
History
DFA was formed in 1998 through the merger of four dairy cooperatives: the Southern region of Associated Milk Producers Inc.; Mid-America Dairymen Inc.; Milk Marketing Inc.; and Western Dairymen Cooperative Inc. Officials from the four cooperatives determined that merging would give the nation’s dairy farmers a fair voice in national policymaking and the ability to address the needs of national customers. Since then, five other cooperatives have become a part of DFA – Independent Cooperative Milk Producers Association, Valley of Virginia Milk Producers Association, California Cooperative Creamery, Black Hills Milk Producers and Dairylea Cooperative Inc. Its headquarters from 1998 until 2017 was near Kansas City International Airport in Kansas City, Missouri. In 2011, DFA acquired Kemps of St. Paul, Minnesota, and its subsidiaries from HP Hood. In 2014, DFA acquired Oakhurst, and Dairylea Cooperative Inc. merged with the farmer-owned Cooperative. DFA became the sole owner of in 2015, which was once a partnership between DFA and Fonterra Co-operative Group Unlimited. DFA also acquired Cumberland Dairy, a processor of ultra-pasteurized dairy products, in 2017. In February of 2020 Dairy Farmers of America agreed to buy a “substantial” part of Dean Foods, the largest U.S. milk producer, for $425 million, the company said. As part of the deal, Dairy Farmers of America, an agricultural cooperative that represents roughly 14,000 dairy producers, would acquire 44 of Dean's plants.In May of 2020 that deal was finalized and the acquisition was completed.
Current operations and services
DFA is a farmer-owned company. The Cooperative, which employs more than 6,000 people nationwide, is led by Rick Smith, president and chief executive officer, and DFA's farmer-leader Board of Directors, led by DFA Board Chairman Randy Mooney. In addition to marketing raw milk, as a dairy foods processor, DFA makes a wide range of dairy products, including cheese, butter, yogurt, ice cream, fluid milk, cheese powder, cream, whole milk powder, sweetened condensed milk, coffee-based beverages and more. The Cooperative has invested in 42 DFA-owned manufacturing plants, joint-venture partnerships with private-label food marketing companies, as well as partnerships resulting in specially formulated ingredients, products and packaging. DFA offers a variety of member services through its Farm Services Division, which comprises the following businesses: DFA Energy, DFA Farm Supplies, DFA Financing, DFA Grazing, DFA Insurance, DFA Risk Management, Empire Livestock Marketing and Dairy One. The Cooperative also provides members the opportunity to participate in leadership development programs like the Young Cooperator and Emerging Leaders programs.
In 2008, the Dairy Farmers of America and two former executives agreed to pay $12 million to settle charges for attempting to manipulate the Class III milk futures contract and exceeding speculative position limits in that contract..
