FOCUSON . . .
High Desert Milk Inc.
Burley, Idaho
hat is High Desert
Milk Inc.?
High Desert Milk is a
producer-owned
cooperative formed in
2001 by six progressive dairymen who
had a desire to increase the return on
their milk and create a more stable milk
market. The co-op owners milk 22,000
cows and farm 30,000 acres in Cassia
and Twin Falls counties in southern
Idaho. Burley is close to the Snake
River, about 150 miles from Boise.
Another goal of the co-op owners is to
make Burley a better community in
which to raise their children and
grandchildren, says co-op President
Dan Ward, who farms with his father,
Glenn Ward.
Profile of a typical member:
All co-op members are secondgeneration
farmers and dairyman. All
graduated from a local high school and
returned to the Burley area to dairy
farm and raise their families. The
largest co-op owner milks 10,000 cows
and farms 10,000 acres. The smallest
owner milks 700 cows and farms 1,000
acres.
Major project now before the co-op:
Simplot closed a potato processing
plant here in 2003, costing the area
about 700 jobs, and a Kraft plant also
closed earlier this year (although
another company has since opened a
smaller operation in that plant). “But
this has been making all farmers
nervous about their future markets,”
says High Desert Milk General
Manager Karl Nelson. So the co-op is
building a new milk plant to help create
a reliable, local market for members’
milk. Ground breaking was held June 4
for the multi-million-dollar milk
processing plant at 1033 Idaho Street in
Burley. The plant should be completed
by April 2008, and will process 2
million pounds of milk daily, with an
annual output of 65 million pounds of
dried milk. The product will be sold
under the co-op’s own High Desert
Milk label. The plant will hire 30
workers in its first phase, with more to
be hired as two subsequent phases of
plant expansion are completed on the
co-op’s vertically integrated business.
“Because this was considered a
historic day for the dairy industry in
southern Idaho, and even the entire
state, the event was turned into a
community celebration,” says President
Dan Ward. Attendees included Idaho
Gov. C.L. “Butch” Otter, among many
other state and community leaders.
Afterwards, United Dairymen of Idaho
sponsored an old-fashioned ice cream
social for the entire community.
How is the plant being financed?
Owners of High Desert Milk are using
their own money for a 20 percent down
payment, with the balance being
financed by Northwest Farm Credit.
The co-op has also received grants from
the state of Idaho.
Overview of co-op operations and
marketing:
About 80 percent of High Desert milk
will be marketed domestically, while the
other 20 percent will be sold on foreign
markets. High Desert Milk will operate
with four separate divisions:
- Pharmaceutical and Supplies —
will sell supplies needed for dairy
and livestock operations.
- Milk Marketing — the co-op
markets milk to various processing
plants in the area.
- Plant Manufacturing and Milk
Processing — the co-op will
process milk at its own plant, now
under construction.
- Organic Milk Production and
Marketing — Currently, one
member is producing organic milk
in one barn, with two more organic
barns under construction.
Thousands of acres have been
certified for raising organic feed.
What has been the biggest challenge
facing the co-op?
“The biggest challenge was deciding to
build a plant on our own without the
help of outside investors,” says Ward.
“The second main challenge is
developing a management team to make
our dreams come true.”
Contact: Karl Nelson, General
Manager, at: (208) 878-6455, or
knelson@yahoo.com
