Dairy Farmers of America

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. 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.

Milk case

In 1971, the Nixon administration faced pressure from dairy producers seeking higher federal price supports for milk. These supports were crucial for stabilizing milk prices and ensuring profitability for dairy farmers. At the time, the administration was also actively fundraising for Nixon’s re-election campaign.

The Milk Case was a 1974 corruption scandal in the United States involving the administration of Richard Nixon and the secretary of the treasury John Connally. The case revolved around revelations that the Nixon campaign accepted contributions from AMPI in exchange for an increase to the federal price of milk.

Investigations revealed that the Associated Milk Producers Inc. (AMPI), a major dairy cooperative, had pledged significant financial contributions to Nixon’s campaign. In August 1969, a lawyer for AMPI delivered $100,000 in a briefcase to Herbert Kalmbach, President Nixon’s personal attorney. This transaction raised suspicions of a quid pro quo arrangement, suggesting that the administration’s subsequent decision to raise milk price supports was influenced by these contributions.

The scandal led to legal actions against key figures. In July 1974, former Treasury Secretary John B. Connally Jr. was indicted on charges including accepting illegal payments, perjury, and obstruction of justice. The indictment alleged that Connally had received $10,000 from AMPI in exchange for influencing the administration’s decision on milk price supports. The prosecution’s case relied heavily on testimony from Jake Jacobsen, a lawyer for the milk producers, who claimed to have delivered the payments to Connally. However, Connally was acquitted of all charges in 1975, as the jury found insufficient evidence to convict him.

21st century

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 America Buys kemps 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 2020, DFA agreed to buy Dean Foods, the largest U.S. milk producer for $433 million. As part of the deal, DFA would acquire 44 of Dean's plants. In May 2020 that deal was finalized and the acquisition was completed.

Brands

• Arla (under license)
• Fromageries Bel (under license)
• Breakstone's Butter
• Cache Valley Creamery
• California Gold Dairy Products
• Cass-Clay Creamery
• Craigs Station Creamery
• Dairy Maid Dairy
• Falfurrias
• Guida's Dairy
• Hotel Bar
• Keller's Creamery
• Kemps
• La Vaquita
• Live Real Farms
• Meadow Gold
• Oakhurst
• Plugrá
• Sport Shake

;Notes

Commodity price manipulation issues

In 2008, the Dairy Farmers of America and two former executives agreed to pay $12 million to settle Commodity Futures Trading Commission charges for attempting to manipulate the Class III milk futures contract and exceeding speculative position limits in that contract.

References

References

1. "Dairy Farmers of America: global net sales 2018".
2. "DFA Reports Record Profits - Dairy Farmers of America".
3. "Farm Horizons: Merger of four co-ops includes Mid-America Dairymen".
4. "Dairylea Members Approve Merger with DFA". Dairy Farmers of America.
5. "St. Louis Post-Dispatch Newspaper Archives".
6. "DALLAS FIRM PLANS TO BUY SHENANDOAH'S PRIDE DAIRY".
7. "Archive Search - PressDemocrat.com - The Press-Democrat - Santa Rosa, CA".
8. O'Neill, Lily. (June 7, 2017). "Dairy Farmers of America Opens the Doors of its New Kansas Headquarters".
9. Naughton, James M.. (1974-06-06). "Nixon Tape Is Said to Link Milk Price to Political Gift".
10. "Mr. Nixon and the Milk Deal". Hood College.
11. "Desert Sun 29 July 1974 — California Digital Newspaper Collection".
12. TIME. (1979-09-10). "Nation: The Milk Case Revisited".
13. [http://www.bizjournals.com/kansascity/news/2011/04/15/dairy-farmers-of-america-buys-kemps.html Kansas City Business Journal - ''Dairy Farmers of America will become owner of Kemps'' (April 15, 2011)], Retrieved Apr. 23, 2015.
14. "Oakhurst Acquired by a Farmer Owned Cooperative - Dairy Farmers of America".
15. "Dairy Farmers of America acquires sole ownership of DairiConcepts - Dairy Farmers of America".
16. "DFA Acquires Cumberland Dairy - Dairy Farmers of America".
17. "DFA completes $433M acquisition, with feds' blessing".
18. "Dairy Farmers of America settles with CFTC".