If it looked like a gamble when Dairy Farmers of America made the commitment to build an export-specific milk powder plant in Fallon, Nev., it now looks like a winning bet even before it officially opens for business this week.
Speaking at DFA's 16th annual meeting in Kansas City last week, co-op President and CEO Rick Smith (seen here) told members the plant is already sold out – at a profit – of its startup processing capacity of 2.0 million pounds of milk per day.
Jay Waldvogel, DFA senior vice president of strategy and global development, said it is being done with just three customers who are some of the biggest and best Asian companies that exist.
One of the realities the plant does have to deal with is there's not enough locally-made milk to fill it, although a 3,500-cow dairy is currently under construction nearby and will help that situation when it begins milking sometime this summer.
"We don't have enough milk right around the plant today," said Smith, "so we're going to have to, over time, grow the local supply. In the meantime, we will bring in some of the milk from farther away." He cited California as a likely source.
The Fallon facility is one of 33 processing plants nationwide operated by DFA, with a 34th currently under construction in Cass City, Mich.
