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Dairy Farmers Of America's Fort Morgan plant breaks ground on expansion

Colorado

With eastern Colorado's milk production growing rapidly, a planned expansion at Dairy Farmer of America, Inc.'s Fort Morgan plant is welcome news. Approximately 120 DFA member dairy farmers produce 144 million pounds of milk per month. DFA's Fort Morgan processing plant has provided a place for that milk since 1998, and construction recently began on an expansion of the facility.

The $21 million expansion will add seven full-time employees and will increase the plant's capacity for milk by 2 million pounds per day.

DFA and the city of Fort Morgan have been partners since the plant was built 10 years ago.

"The plant's role here in Fort Morgan is huge," said Pat Merrill, Fort Morgan city manager. "Not only are they a partner with the city, but they partner with businesses in the city and around the area, so the economic impact is multiplied significantly. The capital investment DFA has made in Fort Morgan is significant and we enjoy our relationship with the cooperative."

The plant sits on 14 acres within the city limits of Fort Morgan and makes sweet cream, condensed milk and nonfat dry milk, all ingredients used to make cheese, yogurt and ice cream.

"We have a talented plant manager in Tom Cotter and a highly skilled, dedicated and professional workforce at the plant," said Greg Yando, chief operating officer of DFA's Mountain Area. "Their successful track record of producing a high quality product in a safe work environment has led the DFA Board of Directors to continue to invest in and grow the plant's capabilities to accommodate Colorado's increasing milk production."

In the past three years, the plant's capacity has quadrupled through careful, calculated expansions and improvements. In addition to increasing capacity, the expansion also will add:

--Four fluid shipping and receiving bays;

--A new processing area to house equipment, including another reverse osmosis system to concentrate milk;

--$1.5 million in upgrading the powder milk dryer;

--$4.4 million in waste treatment improvements;

The expansion is being designed and built by Utah firm The Dennis Group and local contractor Lefever serves as general contractor of the build. The expansion is expected to be complete by May 2009.

Dairy Farmers of America, Inc. is a dairy marketing cooperative that serves and is owned by more than 18,000 dairy farmers in 48 states. DFA is one of the country's most diversified manufacturers of dairy products, food components and ingredients, and is a leader in formulating and packaging shelf-stable dairy products. For more information, call 1-888-DFA-MILK (332-6455) or visit www.dfamilk.com.

9/29/08
3 Star CO\19-B

Date: 9/24/08


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