Dairy Farmers of America, Chinese Partner to Build $100M Kansas Plant

Dairy Farmers of America has issued a statement confirming that it will partner with one of China’s largest dairy companies to build a milk-powder plant in Kansas.

Various media reports put the value of the plant at $100 million, but neither company has disclosed locations for the project. A spokeswoman for the Kansas City-based dairy cooperative said this morning that site selection details were still being addressed.

Rick Smith, president/CEO, said in a prepared statement that the venture would strengthen DFA’s ties to Inner Mongolia Yili. “When we entered into a strategic partnership nearly two years ago, we were certain we would find ways to work together to maximize value for both organizations,” Smith said. “Yili is both an impressive and fitting partner for DFA. Yili is the leading Chinese dairy processor and is focused on many of the same values as DFA, including quality, innovation and integrity.”

The partnership is seen as key for helping U.S. producers reach a market of 1.35 billion Chinese consumers, many of whom are seeking the assurance of food-product safety from western nations. Shipments of melamine-tainted milk in 2008 were responsible for six deaths and thousands of illnesses in China, fueling demand for product quality assurances in that fast-growing economy.

Dairy Farmers of America is a dairy marketing cooperative owned by nearly 15,000 members on nearly 9,000 farms in 48 states. In addition to dairy products, food components and ingredients, it’s a national leader in formulating and packaging shelf-stable dairy products.