On Board With The Chairman - October 2024
Dear Member-Owners,
The board of directors had their monthly meeting on Tuesday, October 29, at the Visalia headquarters. Brad Anderson kicked off the meeting, and he provided his market updates and some headwinds and tailwinds that our Co-Op could be facing as the year comes to an end. The team and staff have done a great job navigating these roads the last couple of weeks with the outbreak of the H5N1 virus, and they'll continue to do so as this virus continues to spread. Brad gave us an update on the new plant, Valley Natural Beverages (VNB), and the progress that is being made. I'm happy to report that things are coming along at a great pace, and we should soon be able to start running some systems on the water to go through the break-in process, with the first milk being processed before the end of the year. Michael Johnson, SVP of Corporate Services, and Tanya Hinton, Logistics and Outside Warehouse Manager, were invited to join the meeting and give us an update from their department. They've done a great job at negotiating with our outside warehouses and finished product trucking companies to make sure we are as competitive in the market space as possible, as well as looking for more opportunities in the future for our Co-Op to keep our maximum efficiency and minimize our costs in these key areas.
Jason Allen then presented the latest financial report. The September numbers came in above what was forecasted in the budget, but the board and management are still being very cautious as we navigate the remaining months of 2024 with the unpredictable markets we've been seeing. While Jason is fairly new to the CDI leadership team, he has hit the ground running and brought valuable new perspectives and energy to the finance team. The team has been actively working with the production and sales teams to track and improve processing costs, sales margins, and product inventories to best position CDI as we execute a hopefully strong fourth quarter and move into 2025.
Rob Vandenheuvel's report concerned the milk markets, the long-term outlook on pay price, and an update on the H5N1 virus. As most of you know, this virus is making a big impact on farm when it's contracted. We're also seeing those impacts at the plants. The team has done and continues doing the best job possible to keep our plants full of milk and move it where needed to ensure we meet our obligations. Dennis Bettencourt, SVP of Manufacturing, was brought into the board room and gave us a snapshot of what's been going on with our projects at the plants. CDI has more active large-scale projects going on right now than perhaps at any time in the coop's history, and the team (and the board) is excited to see those projects come to fruition in the weeks and months to come. Given the volume and complexity of the projects going on at once, this is a challenging job, but Dennis and his team have really stepped up to the plate and delivered.
As I close, I'd like to remind the membership that we're accepting applications for the 2025 CDI Leadership Program, which will launch in the new year. This is an amazing opportunity to get an inside look at how our Co-Op runs, spend quality time with staff, and meet some of your fellow members-owners. If this is something you're thinking about for yourself, or maybe you've got a son or daughter who's interested in the business, I highly suggest submitting an application. Contact Stacy Heaton at 559-623-6977 or SHeaton@CaliforniaDairies.com for a link to the application.
I hope and pray that everyone has a wonderful Thanksgiving with friends and family. We will welcome home some of our kids who are returning home from college for a winter break and catch up with them around the dinner table. I pray for our country and elected officials during this election season. We pray for God's hand to direct this country going forward and that we can focus and lift our eyes upon him.
Please feel free to reach out to me or any of the board members if you have any questions.
All the best,
