
USA – Dairy Farmers of America (DFA) has announced the closure of its dairy ingredient facility in Pollock, South Dakota, affecting 33 full-time and four part-time employees.
The decision, Effective July 18, 2024, follows an in-depth analysis of demand and supply dynamics as part of DFA’s Milk Marketing and Balancing Optimization Project.
In addition, it’s part of a more extensive, coordinated milk marketing and balancing optimization project across the cooperative.
Dairy Farmers of America emphasized the necessity of maintaining financially robust operations that enhance the returns on the investments of their family farm owners.
Raw milk previously handled at the Pollock facility will be redirected to nearby production sites, ensuring customers continue receiving uninterrupted service. Industry trends and shifts in the supply chain likely influenced this decision.
The closure’s impact is expected to extend beyond Pollock, affecting the regional dairy network. Nearby facilities like Cass-Clay Creamery in Fargo, ND, and Bongards in Perham, MN, are set to absorb the excess milk. Bongards is expanding to accommodate the increased volume and maintain network stability.
Despite the closure, South Dakota’s dairy industry remains robust, with nine other processing plants contributing to increased state production. DFA operates 46 facilities nationwide, with 13 located in the Central Area, highlighting its significant agricultural presence.
In a statement, DFA expressed gratitude to the Pollock employees for their dedication and acknowledged the challenge of making decisions that affect livelihoods. The cooperative is dedicated to assisting workers through this transition.
This closure comes as the region has experienced significant shifts in the dairy industry, including Prairie Farms’ cessation of milk bottling 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 expanding, will absorb the redirected milk volume.
Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE
Be the first to leave a comment