Dairy Farmers of America Announces Closure of South Dakota Plant
Source: The DairyNews
Dairy Farmers of America (DFA), a major U.S. dairy cooperative, has declared that it will shut down its dairy ingredient facility in Pollock, South Dakota, citing changes in market demand and supply dynamics. The closure, set to affect 33 full-time and four part-time employees, was announced on July 18, 2024.
The decision to close the plant, also known as DairiConcepts, is part of DFA’s broader strategy to optimize milk marketing and balance across its cooperative network. "This decision follows a careful analysis of new demand and current supply dynamics and is part of our Cooperative-wide optimization project," the company stated.
DFA has committed to assisting the affected employees through the transition, emphasizing the value of their hard work and dedication throughout their tenure at the facility. "The employees at the facility have done an excellent job, and we appreciate all their hard work and dedication. We will work with employees to help them through this transition," DFA communicated.
The cooperative operates 46 plants nationwide, with the Pollock facility being one of seven ingredient plants in its Central Area, which includes locations from the Dakotas to Wisconsin and from the Canadian border to Oklahoma. Despite the closure, DFA assured that the raw milk volume processed at the Pollock plant would be redirected to nearby production facilities, ensuring continued service to its customers.
This closure comes at a time when the region has experienced significant shifts in the dairy industry, including the cessation of milk bottling by Prairie Farms in nearby North Dakota in September 2023. The industry anticipates that nearby facilities like Cass-Clay Creamery in Fargo, Associated Milk Producers Inc. in Hoven, and Bongards in Perham, which is currently expanding, will absorb the redirected milk volume.
Tom Peterson, executive director of South Dakota Dairy Producers, was unavailable for immediate comment on the impact of the DFA's plant closure on the local dairy sector.
DFA has committed to assisting the affected employees through the transition, emphasizing the value of their hard work and dedication throughout their tenure at the facility. "The employees at the facility have done an excellent job, and we appreciate all their hard work and dedication. We will work with employees to help them through this transition," DFA communicated.
The cooperative operates 46 plants nationwide, with the Pollock facility being one of seven ingredient plants in its Central Area, which includes locations from the Dakotas to Wisconsin and from the Canadian border to Oklahoma. Despite the closure, DFA assured that the raw milk volume processed at the Pollock plant would be redirected to nearby production facilities, ensuring continued service to its customers.
This closure comes at a time when the region has experienced significant shifts in the dairy industry, including the cessation of milk bottling by Prairie Farms in nearby North Dakota in September 2023. The industry anticipates that nearby facilities like Cass-Clay Creamery in Fargo, Associated Milk Producers Inc. in Hoven, and Bongards in Perham, which is currently expanding, will absorb the redirected milk volume.
Tom Peterson, executive director of South Dakota Dairy Producers, was unavailable for immediate comment on the impact of the DFA's plant closure on the local dairy sector.
