Wisconsin Ag Connection - National/World News - Swiss Valley Sells Dubuque Milk Plant to Prairie Farms

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Swiss Valley Sells Dubuque Milk Plant to Prairie Farms
USAgNet - 06/04/2009

Swiss Valley Farms is selling its Dubuque milk plant as the farmer-owned cooperative focuses on its cheese business, reports The Gazette.

Davenport-based Swiss Valley, which closed a cheese processing plant in Cedar Rapids after the June flood, this week announced the sale of its Dubuque milk bottling plant to Prairie Farms, Carlinville, Ill. Terms of the sale were not disclosed.

Prairie Farms also is a farmer-owned cooperative. The Dubuque plant will become part of a large network of facilities owned or operated by Prairie Farms.

"As our customer base continues to consolidate to gain market share and improve operating efficiencies, our dairy beverage business has been challenged to supply customers who have a significant regional or national market presence," said Don Boelens, chief executive officer of Swiss Valley Farms. "As a result, Swiss Valley Farms' products will be positioned well for future growth and success in significant regional and national markets."

A licensing agreement between Swiss Valley Farms and Prairie Farms will maintain Swiss Valley's producers, standards and labeling.

"There won't be change at all for our producer-owners, or for our customers," Boelens said, adding that the remainder of Swiss Valley's business model is very strong.

"This transaction will allow us to place additional resources and focus on our cheese business," Boelens said.

Swiss Valley Farms has 560 employees and annual sales of $520 million. The four-state cooperative has about 1,000 members.

Swiss Valley has cheese manufacturing plants in Luana, Iowa, Mindoro and Platteville, Wis. and a cheese packaging plant in St. Olaf, Iowa. The cooperative also operates a wholly-owned subsidiary, Rochester Cheese, with plants in Dalbo, Rochester and Spring Valley, Minn.

Swiss Valley employed about 47 in Cedar Rapids. The plant at 133 F Ave. NW was heavily damaged by the June flood.