Butter plant adds silo

AMPI getting record levels of cream

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- The Associated Milk Produces Inc. (AMPI) butter plant on Center Street got a boost to its storage capacity Friday when a 30,000 gallon silo was moved into place by two large cranes and a truck.

The silo -- which will be used to store sweet cream that will be churned into butter -- will be operational in the coming weeks after plumbing and electrical connections are in place. The plant already has five other tanks on site.

The plant is currently receiving record levels of cream which will enable it to produce a record 18 million pounds of butter this month.

"When cream prices are favorable, we purchase more," said AMPI plant manager Bill Swan.

Butter demand -- aided by low prices -- is high in all 48 contiguous states, according to Swan.

The plant currently employs 140 workers. Last fall, employment rose to 175 during the busy season.

Despite 2002 milk prices sinking to 20-year lows, the AMPI Board of Directors approved record equity payments to members totaling $13.3 million.

The board members, all active dairy producers, accelerated payments weeks, even months in advance of the normal payment period.

"Knowing the cash-flow challenges members have been facing with very low markets, the board realized it was important to get the cash in the country," said AMPI President Paul Toft, a dairy producer in Rice Lake, Wis.

Last August, members were surprised by an early mailing of $1.7 million of 2001 allocated earnings. Another $5.8 million was paid in September, two months ahead of schedule. Much of the $1.4 million equity payment earmarked for December was distributed in November.

The payments, added to early equity revolvements for retired AMPI members and $3.4 million in allocated earnings paid last spring, created the record yearly amount.

AMPI members retired from dairy farming who are at least age 65 can apply for the early equity revolvement benefit that pays all equity within five years.

"AMPI is committed to timely equity revolvement for our members. Our record is among the best in the industry," AMPI General Manager Mark Furth said.

AMPI is a dairy marketing cooperative with 4,600 member farms that annually market more than five billon pounds of milk. Members represent dairy operations throughout Minnesota, Wisconsin, Iowa, Nebraska, Missouri, South Dakota and North Dakota. Members own 14 manufacturing plants and market a full line of consumer-packaged dairy products.

For more information, visit www.ampi.com