On Board With The Chairman - September 2024
Dear Member-Owners,
Our September board meeting was held two weeks ago at CDI Visalia, with a full agenda to get through. Brad was up first, as usual, and we did a deep dive into both butter and powder pricing in the marketplace. We had deep discussions about both products and the steps that the staff is taking to navigate the volatile markets. Brad gave us his projections on future pricing and an idea of where we’d like to be with inventory positions by the end of the year. Brad invited Ricardo Galeana, CDI’s Chief Technology Officer, into the meeting to provide updates on what his team is doing and has done to protect our systems from cyber threats and streamline our technology to make us more efficient for reporting purposes. A lot is going on in the cyber security world, more than what I was aware of, and I am happy to report that Ricardo and his team have done a fantastic job at ensuring we’re at the top of our game in this high-risk area.
Jason Allen was up next to provide the August and year-to-date financial report. We had a finance committee meeting the day prior and had great discussions on the performance of our Co-op. The month of August wasn’t great, but that was expected heading into these lower-volume production months. Management has done the right things, getting milk into the higher-yielding plants and keeping them full to avoid big losses, but there’s still work to be done. Jason gave us his team’s projections on where our Co-Op might end up at the end of the year and what we’re looking to do to obtain those goals.
Dennis Bettencourt then joined the meeting to provide updates on CDI’s plant operations and all the projects we’ve got going on. Significant projects are currently ongoing at three of our existing plants, and as you all know, we are building a new facility in Bakersfield simultaneously. It’s great to see how these are all coming together within the time frame and, most importantly, on budget. We expect all the projects to be done well before the spring flush hits and have Valley Natural Beverages (VNB) ready to process milk.
Rob Vandenheuvel reported on some industry news and some issues hitting close to home with the H5N1 (bird flu) virus in the valley. The staff has been in communication with the other Co-Ops in the valley and is working together to do whatever they can to help producers. The field staff is aware of the issues as well, so if any producers are in need of additional PPE, please reach out to your field representative, and they’ll do their best to bring you what you need.
As we close, on behalf of the staff and the board, we’d like to express our deepest sympathies and condolences to the Jake De Raadt family on the passing of Jake. For those of us who were lucky enough to know Jake, he was a great man with a huge passion for the dairy industry and his love of cows. We rest assured that Jake is with our Lord in heaven and rejoicing with Him in song. I pray that the Lord gives us, our families, and our employees the strength and safety needed to get through the next few weeks and months as our California industry navigates this threat to our herds and businesses. As always, please feel free to reach out with any questions you may have.
All the best,
Cory Vanderham
Chairman of the Board
2000 N Plaza Drive
Visalia, California 93291
559.269.9618
