by Brandon Arcari, Vermont Business Magazine The farm families of St. Albans Cooperative Creamery voted to approve a merger with Dairy Farmers of America (DFA) July 29. The vote, with 108 of the 307 voting members casting a vote, was 99-9 in favor of the merger.
“We are incredibly excited about this new chapter for dairy farmers in Vermont,” said Harold Howrigan, Jr., chairman of the St. Albans Board and sixth-generation dairy farmer, in a press release. “We are very pleased with the outcome of today’s vote and are optimistic about the future our membership will have as DFA members.”
St. Albans has been an integral part of the Vermont dairy community for the past century, and a member cooperative of DFA since 2003. St. Albans will not immediately change branding nor signage.
“This merger and vote is the result of 18 months of work,” said Howrigan in a media phone call July 29. “I could not be prouder of the way that our membership turned out.”
Leon Berthiaume, the CEO of St. Albans Cooperative Creamery, said in the media call that members would not see any immediate changes, and that when changes do occur, they will be communicated to members well in advance.
“During our 16-year partnership, we have developed a strong, collaborative working partnership with DFA,” Berthiaume said in a press release. “In many ways, this merger is a continuation of the strategic goals, values and mission of St. Alban’s Cooperative Creamery.”
Berthiaume said that voting involved members from all over St. Albans’ membership area.
“[The vote was] supported throughout the membership, and not just the area around the processing facility,” he said.
In terms of governance, the St. Albans board will become part of the DFA Northeast area council, and an unnamed member of the board will become part of the DFA corporate board, while St. Albans will also have 10 delegates to serve in the governance structure of DFA, Berthiaume said.
“We are excited to welcome the hardworking members and employees of St. Albans to the DFA family,” said Brad Keating, senior vice president and chief operating officer of DFA’s Northeast Area. “Together, we are committed to investing in continuing the strong tradition of dairy farming in the Northeast.”
Keating said that investment from DFA would involve looking at everything from modernization and refits at the plant to purchasing more vehicles and equipment for the trucking company, McDermott’s. The merger will also make more programs available for members that St. Albans was not able to offer, he said.
“[DFA will work to do] anything that we can do to help a farm farm a little better, a little easier,” Keating said.
That would include insurance programs, buying programs for feed or technical supplies, risk management, or grazing programs, he said.
Equity in the cooperative will be addressed following the audit expected to be completed by the end of October, according to Berthiaume.
“As of 10/31/18 there would have been a 3% slippage on equity,” he said.
As part of the merger, McDermotts, the St. Albans Cooperative Store and the St. Albans Cooperative Creamery Plant will become wholly owned subsidiaries of DFA. In addition, the Board of Directors of St. Albans Cooperative will continue to represent dairy farmers’ interests as part of DFA’s Northeast Area Council.
The merger officially closed Thursday, August 1.