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MEMBERSHIP SPOTLIGHT

Organization: Associated Milk Producers (AMPI)

Location: New Ulm, MN (home office) with 12 manufacturing plants located throughout the Upper Midwest

To maximize the value of milk produced on farms throughout the Upper Midwest, farmers came together to form AMPI in 1969. That mission continues today. The 3,000 dairy farmers of AMPI market 6 billion pounds of milk, own 12 manufacturing plants, and market a full line of consumer-ready dairy products resulting in $1.7 billion in annual sales. AMPI-members are located in Wisconsin, Minnesota, Iowa, Nebraska, South Dakota and North Dakota.

Q & A with Ed Welch, AMPI President and CEO:

How is AMPI funded?
As a dairy marketing cooperative, AMPI is owned by and for the dairy farmers who market their milk through the cooperative. Milk flowing into AMPI’s network of manufacturing plants is primarily made into cheese, butter, and powdered dairy products.

Half of AMPI’s sales are from consumer-ready products. AMPI manufactures the products marketed under 174 retail, food service, and food ingredient brands, including making cheese slices for McDonald’s.

What is new with your organization?
Late last year, 18 new cheese vats were installed at AMPI’s two largest cheese plants in Jim Falls and Blair, WI. These cheese vats are the first of their kind, featuring advances in technology and automation that will make more and better cheese from the same volume of milk. Growing demand from our customers reaffirms AMPI’s commitment to be a premier cheese producer.

The new equipment has already proven to be a winner for AMPI. A trial vat installed at the Blair plant produced award-winning cheese for the 2011 World Dairy Expo Dairy Products Championship Contest. Judges named AMPI’s Cheddar cheese entry first place.

What are the key trends affecting your industry?
Volatile milk markets, combined with skyrocketing onfarm input costs, have proven difficult for the businesses of each of our dairy farmer-owners. These hurdles have caused a decline in dairy farms and total milk volume in the Midwest. Despite this decline, processors in the region expanded plant capacities and are now struggling to keep those plants consistently full.

What are your legislative priorities?
AMPI’s legislative agenda is developed by our dairy farmer-owners and put into action each year. AMPI takes pride in our grassroots involvement and representation on Capitol Hill, allowing the cooperative to be on the frontline of current policy discussions.

Our priorities currently include:

  • constructing a dairy safety net that supports family farms, not milk volume;
  • supporting dairy growth management as an effective way to reduce market volatility; and
  • underscoring the dairy industry’s commitment to producing high quality milk and dairy products that begin with top-notch animal care.

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