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AlB-Lancaster Fanning, Saturday, June 28, 1997
fCMPA, MMI, Reach Milk Supply, Marketing Arrangement
STRONGSVILLE, Ohi®
Two north central dairy coopera
tives are building a “co-op to co
op” relationship that will improve
milk supply, market balancing,
and manufacturing efficiencies
between the two organizations in
Michigan and Indiana.
In a joint statement today, the
leaders of Milk Marketing Inc.,
(MMI) of Strongsville, Ohio and
Independent Cooperative Milk
Producers Association, (ICMPA)
of Grand Rapids, Michigan
announced an arrangement which
includes a milk supply agreement
and the sale of ICMPA’s Kalama
zoo Creamery* Company opera
tions and assets to MMI.
‘This is a win-win situation for
the members of both dairy
cooperatives,” says Don Schriver,
MMl’s executive vice president
and CEO. “MMI and ICMPA
were faced with the same industry
challenges a smaller dairy pro
ducer base, declining milk sup
plies, harsh and unpredictable
price swings, larger customers,
and fiece competition for market
share. It made economic and
marketing sense to work together
to reduce costs and to maximize
efficiencies for our dairy farmer
members.”
The plan calls for an exchange
of resources and capabilities.
According to the long-term agree
ments, ICMPA will close its Kala
mazoo, Michigan butter and con
densed milk operation, which is
used primarily as a balancing
facility to process surplus milk.
MMI will purchase the plant’s
9.5-24 4 ply $105.00
11.2- 4 ply $109.00
12.4- 4 ply $142.00
14.9- 4 ply $186.00
14.9- 6 ply $200.00
16.9- 6 ply $237.00
16.9- 8 ply $312.00
11.2- 4 ply $142.00
12.4- 4 ply $132.00
13.6- 4 ply $149.00
13.6- 6 ply $166.00
14.9- 4 ply $194.00
14.9- 6 ply $212.00
16.9- 6 ply $257.00
16.9- 6 ply $244.00
18.4- 6 ply $347.00
18.4- 8 ply $358.00
16.9- 6 ply $281.00
18.4- 6 ply $308.00
18.4- 8 ply $377.00
13.6- 4 ply $211.00
13.6- 6 ply $234.00
i 15.5-38 6 ply $218.00
16.9- 6 ply $330.00
16.9- 8 ply $378.00
18.4- 6 ply $320.00
18.4- 8 ply $347.00
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assets, and move the ICMPA mik
supply to MMl’s Dairy Farm Pro
ducts plant in Goshen, Indiana.
The Goshen facility will perform
the all-important balancing func
tion for both organizations. The
Kalamazoo assets will be trans
ferred by August 1, 1997.
Charles Courtade, general man
ager, ICMPA. agrees that the rela
tionship will be beneficial to the
farmer-members of both organiz
taions. “After thoroughly studying
the situation, ICMPA’s board of
directors unanimously agreed to
this long-term relationship,” says
Courtrade; “The positive impact
this will have on our ability to
market milk for the highest return
to member-producers was the
driving force behind the board’s
decision.”
Under the arrangement, ICM
PA and MMI will work together
on milk supply needs, mutually
FIDELITY
TRU-GRIP
FARM
TIRES
strengthen the ability to efficiently
balance supplies when there’s too
much milk in the marketplace,
reduce the costly overhead of run
ning two balancing facilities in the
same market area, and help to sta
bilize member incomes.
“It made no sense to continue
duplicating efforts. MMI was
balancing milk in Goshen; just
across the state line, ICMPA was
doing the same in Kalamzoo,”
says Courtrade. “Why run two
plants when one would to the job?
This arrangement is logical. ICM
PA members get a stable market
for their milk, and access to a
balancing facility. MMI gets a
year-round milk supply to maxim
ize the capacity and potential of its
Goshen operations.”
From a geographic standpoint,
the businesses collaboration
makes sense. ICMPA and MMI
are located closely to similar
JULY 26, 1997
A Special Section Recognizing
The Northeast Dairy Farm
Beautification Annual Winners
For 1997
SPECIAL SUMMER ISSUES
markets and milk supply areas, dairy cooperative that
ICMPA markets and processes processes milk for its 700 iry
milk for 700 dairy producers in the producer members in thestateot
state of Michigan. MMI repre- Michigan Last year ICMPA
sents 7,500 producers in 11 states, marketed 965 million pounds of
including Michigan’s southern tip. milk. f
“This is an exciting cooperative With of
arrangement If cooperatives are XkeStal is L ion’s Airf
to maximize returns to their dauy MarteJ & producer-owned
farmer-owners, they must pursue larges * . * ,
relationships like this to increase cooperative and ®
efficiencies for members in the dauy P roc “ :..
movement and marketing of their •£, farm’families
milk,” says Schriver. “It’s just that s f 7 ; 500 /^
i mi. _ a „ mil states (Ohio, Indiana, ren
simple. MMI and ICMPA share a . j Kentucky, Maryland,
common vision of working M f chigan> New Yo ri West Virgi
together to maximize returns to Massachuesetts. Vermont and
theti farm families. Delaware) process and market
d iA r L nd a -V r bOlioo pen., of
jK r iune^m
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