News Annual figures
Increase in profit and worries Dairy Farmers of America
Dairy Farmers of America, the largest dairy company in the US, saw sales grow 8% last year to $19,3 billion. Profits also increased. However, the large staff shortage is an urgent problem, which is also driving the cooperative's wheels this year.
The turnover growth is mainly due to the acquisition of the American Dean Foods. This dairy was acquired from bankruptcy in 2020 for $433 million. Bottom line, profits rose $28 million to $199 million. Despite the green numbers, the cooperative can look back on a challenging year, mainly due to disruptions in the supply chain.
The company is struggling with major staff shortages. According to outgoing CEO Rick Smith, there are 1.500 open positions, accounting for 10% of the workforce. The company says it's nearly impossible to knit the milk supply around. According to the CEO, milk has to be collected from 3.000 farms every day. Dairy Farmers processes nearly 30% of America's milk supply.
Milk price fraction higher
Last year, the 11.500 member dairy farmers of the cooperative could count on a milk price of $18,40 per CWT, which translates into approximately €35 per 100 kilos. This is a fraction higher than the year before. As in Europe, milk prices in the US have meanwhile risen to significantly higher levels due to the rapidly rising dairy market.
Wouter Job
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