California Dairies expands their pasture

California Dairies Inc. purchases ownership rights to make DairyAmerica an entirely owned subsidiary, allowing for smoother operations

VISALIA – DairyAmerica moved to greener pastures as they became solely owned by California Dairies Inc, after years of being co-owned by three companies.

On Nov. 29, California Dairies Inc. (CDI) announced their agreement to acquire DairyAmerica starting on the first of next year. DairyAmerica is currently co-owned by CDI, Agri-Mark, Inc., and O-AT-KA Milk Products. However, 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 California Dairies, Inc.

CDI is a cooperative that is owned by roughly 300 dairy farmers. The company receives and processes the milk products from each of the owners farms, and in turn, DairyAmerica markets and sells the nonfat and skim milk powder products that come from CDI, Agri-Mark, Inc., and O-AT-KA Milk Products. With CDI being the sole owner of DairyAmerica, the marketing transition will be much smoother than what it was before, when the company was co-owned.

Under the new structure, not much will change within DairyAmerica. They will continue to market milk powdered products that are produced by Agri-Mark, Inc. and O-AT-KA Milk Products, and the office will remain in Fresno, Calif. DairyAmerica will also remain under the leadership of Patti Smith, the current CEO.

“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 Patti Smith, chief executive officer of DairyAmerica. 

Both William Schreiber, chief executive officer of O-AT-KA Milk Products and David Lynn, interim chief executive officer at Agri-Mark, Inc. said they continue to support the DairyAmerica vision. 

“We are pleased to be a part of this transition,” Lynn said, “[We] have seen the benefits of DairyAmerica’s transformation under its new leadership the past two years.”

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