CO-OP MEMBERS TO VOTE ON MERGER
By Gregory J. Lamoureux
County Courier
ST. ALBANS: According to sources inside the St. Albans Cooperative Creamery, the board of directors has voted unanimously to recommend to its membership a merger with Dairy Farmers of America (DFA).
Officials are calling the proposed merger, discussed by St. Albans members at an informational member meeting today, a way to secure a “long-term future amid rapidly changing market dynamics.”
The proposed merger requires approval by the Co-op members, who will be asked to vote during a special member meeting in about a month.
The St. Albans Cooperative recently celebrated their 100th anniversary, being recognized by the Vermont Legislature for their excellence and economic significance to the region and the state.
Harold J. Howrigan, Jr., the chairman of the St. Albans Cooperative Creamery’s Board of Directors, said the organization has been working since 2017 to plan ahead for an event such as a merger with DFA.
“Our board has been working nearly two years to strategically plan for the future of our members,” Howrigan said. “With increasing shifts in customer needs, an imbalance in supply and demand and a volatile milk price cycle, it is clear that change is needed for our Cooperative; however, with change comes great opportunity. DFA offers increased value to our members with the ability to make continued investments in operations, a clear vision for the future and the depth of leadership to carry out that vision.”
The announcement was sent to media agencies throughout Vermont Monday afternoon, with an agreement that they would not publicize it until after 4 pm today. The County Courier was the first news agency to publish the news.
The Co-op has been an integral part of the Vermont dairy community for the past century, and a member cooperative of DFA since 2003. As a national dairy marketing cooperative, DFA offers the Co-op members milk market security, investments in a nationwide network of manufacturing facilities, access to patronage dividends and valuable member programs and services.
Conversely, the merger provides DFA members with established customer relationships, investments in critical hauling and manufacturing assets in the Northeast and increased milk marketing activities in the region.
“DFA and St. Albans Cooperative have always had closely aligned philosophies and values, with both cooperatives focused on providing value to members and committed to preserving the Northeast tradition of family dairy farming for years to come,” said Brad Keating, senior vice president, and chief operating officer of DFA’s Northeast Area. “With our strong history of working together, a merger is a natural evolution of our partnership.”
Details of the merger will be available to members before their vote, but officials said that as part of the merger, McDermotts, a milk hauling company originally based in Enosburgh, currently owned and operated by the Coop, would become a wholly owned subsidiary of the Dairy Farmers of America, as would the St. Albans Cooperative Store, and St. Albans Cooperative Creamery Plant.
Rumors of the merger have been circulating throughout the region for months after members of the Co-Operative were notified at the annual members’ meeting in February.
“I have seen the dairy industry evolve and the continued need for dairy farmers to work together. DFA has been a strategic partner and I am very enthusiastic about what they will bring to our members, community, and state,” said Leon Berthiaume, SACC chief executive officer.
A press conference has been scheduled for Tuesday, where members of the Coop will be available to answer questions on the merger. We’ll bring you more information in this week’s print edition of the County Courier.
