However, net income rose to $131.8m (€122.57m) from $94.1m (€87.51m) the previous year.

The drop in turnover was attributed to lower milk prices paid to its producers. Average milk price paid to the co-op’s members was $16.22/100 pounds (33.25c/l) compared with $17.18/100 pounds (35.22c/l) paid out in 2015.

DFA directed the marketing of 62.6bn pounds (28.45m tonnes) or 29% of US milk supply through the co-op’s consolidated businesses.

DFA announced plans to construct a new cheese plant in Michigan with Glanbia PLC, Foremost Farms and Michigan Milk Producers. The co-op also broke ground on a premium cheddar cheese facility in western New York, which is a joint venture between the co-operative, DFA members from western NY and Arla Foods of Denmark, plus the continued construction of a new dairy ingredients plant in Garden City, Kansas.

Meanwhile, it was also announced this week that Fonterra, the largest dairy exporter in the world, had a 2% increase in profit, reaching $418m.

The New Zealand-based co-op had a revenue of $9.2bn, recording a 5% rise.

Read more

IFA launch strategy to secure liquid milk production

Skim powder heading for intervention