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California Dairies to acquire DairyAmerica

DairyAmerica will become a wholly owned subsidiary of CDI.

California Dairies Inc. (CDI), the largest dairy farmer-owned cooperative in California, announced this week that it has agreed to acquire DairyAmerica, effective January 1, 2023.

DairyAmerica, a globally recognized supplier of quality and sustainable dairy ingredients, is a federated cooperative currently co-owned by CDI, Agri-Mark Inc., and O-AT-KA Milk Products. As part of the acquisition, CDI will purchase the ownership rights currently held by Agri-Mark Inc. and O-AT-KA Milk Products, making DairyAmerica a wholly owned subsidiary of CDI. 

“This investment in DairyAmerica provides the opportunity for CDI to unlock significant synergies and represents another step towards improving efficiencies in providing world markets with high quality dairy ingredients,” said Brad Anderson, president and chief executive officer of CDI.

Under the new structure, DairyAmerica will continue to market milk powders produced by Agri-Mark and O-AT-KA Milk Products. These marketing agreements will allow for the continued multi-origin and sustainable supply benefits currently enjoyed by DairyAmerica.

“We continue to support the Dairy America vision,” said William Schreiber, chief executive officer of O-AT-KA Milk Products.

“We are pleased to be a part of this transition and have seen the benefits of DairyAmerica’s transformation under its new leadership the past two years,” said David Lynn, interim chief executive officer at Agri-Mark.

DairyAmerica will remain under the leadership of Patti Smith, chief executive officer, and the DairyAmerica office will remain in Fresno, California.

“As we continue to transform our business, this investment by CDI provides the framework to focus on our people and processes while strengthening our global competitiveness,” said Smith.

CDI is the largest member-owned milk marketing and processing cooperative in California, producing approximately 40% of California’s milk. Co-owned by more than 300 dairy producers who ship nearly 17 billion pounds of Real California Milk annually, CDI is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery.





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