AMPI Selling Part of Its Business 03 Nov 12

Associated Milk Producers Inc. (AMPI) is selling its shelf-stable dairy products business to focus the company’s resources on a core product line.

KWLM reports as a result of the decision to sell the business, AMPI will idle its only shelf-stable products packaging facility in Dawson.

Ed Welch, CEO of the dairy farmer-owned milk marketing company based in New Ulm, Minneosta says “Selling the shelf-stable product business is one of several steps we’ve taken to realign the cooperative for growth.” He says “We will continue to invest in what we do best. That’s manufacturing milk into consumer-packaged cheese and butter, along with powdered dairy products, for a growing marketplace.”

AMPI will be phasing out operations at the Dawson plant in the coming months. Milk that is currently delivered to the plant will be channeled to other facilities in the cooperative’s manufacturing network.

Welch said the AMPI management team is working to ease the transition for Dawson plant employees, providing resources needed to find alternative employment. That includes encouraging employees to apply for positions at other AMPI manufacturing facilities.

The shelf-stable dairy product business, which includes cheese sauce and pudding, is being purchased by Bay Valley Foods of Oak Brook, Ill. The 200,000-square-foot manufacturing facility and water treatment plant in Dawson is not included in the transaction. The plant, a former soybean processing facility, will be for sale.