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California Dairies Inc. Membership

By California Dairies Inc.

Last reviewed: December 2025

California Dairies Inc. (CDI) is the largest dairy cooperative in California, representing nearly 300 member farms that collectively ship 17 billion pounds...

Quick Snapshot

California Dairies Inc. (CDI) is the largest dairy cooperative in California, representing nearly 300 member farms that collectively ship 17 billion pounds of milk annually to CDI's processing facilities.

  • Who It's For: California dairy farmers seeking a strong cooperative partner for milk marketing and value-added processing.
  • What It Does Best: Maximizes value for California dairy farmers through efficient processing of butter, powder, and dairy ingredients for domestic and export markets.
  • Why It Matters: As California's largest cooperative, CDI provides market stability and scale efficiencies for member farms in the nation's top dairy state.
  • Overview

    California Dairies Inc. (CDI) is the largest dairy cooperative in California and one of the largest in the nation. The cooperative represents nearly 300 family-owned and operated member dairies that collectively ship approximately 17 billion pounds of high-quality milk annually.

    CDI's processing operations focus on manufacturing butter, milk powders, and dairy ingredients for private label retail, foodservice, industrial applications, and export sales. The cooperative's scale and efficiency allow it to compete effectively in global dairy ingredient markets.

    As a California cooperative, CDI plays a critical role in the state's dairy industry, which produces about 20% of the nation's milk. The cooperative provides its members with stable markets, competitive pricing, and the benefits of collective bargaining and processing scale.

    CDI's focus on quality and food safety has made it a trusted supplier to major food companies and retailers worldwide. The cooperative continues to invest in its processing facilities and capabilities to serve evolving customer needs.

    Ideal Users

    Farm Types: California conventional dairy, Large-scale operations, Multi-generation farms

    Herd Size: All sizes, with significant representation of larger operations

    Key Roles: Dairy farm owners, Farm families, California dairy producers

    Geographic Focus: California (San Joaquin Valley, Central Valley, Southern California)

    Key Features

    California Market Leadership

    Largest cooperative in the nation's top dairy state

    Processing Scale

    17 billion pounds of milk processed annually across CDI facilities

    Diverse Product Portfolio

    Butter, powders, and ingredients for multiple market channels

    Export Capabilities

    Strong presence in international dairy ingredient markets

    Member Equity

    Cooperative ownership builds farmer equity over time

    Advanced Capabilities

    Quality Programs

    Comprehensive quality assurance supporting premium market access

    Risk Management

    Tools and programs for managing price volatility

    Sustainability Initiatives

    Environmental stewardship programs for member farms

    Industry Advocacy

    Active engagement on California dairy policy issues

    Integrations & Partnerships

    Works With: Milk testing labs, Hauling logistics, Quality management systems

    Data Flow: Component and quality data supports pricing; market information shared with members

    Industry Standards: California CDFA standards, FDA Grade A, FSMA

    Competitive Advantages

  • Largest cooperative in California, the #1 dairy state
  • Scale efficiencies in processing and marketing
  • Strong position in global dairy ingredient markets
  • Focus on quality and food safety
  • Farmer-owned governance and returns
  • Getting Started

    Timeline: Membership application and approval; coordination with CDI field staff

    Infrastructure: Grade A dairy facilities meeting California standards

    Migration: Transition planning with CDI representatives

    Tips for Success:

  • Understand California's unique regulatory environment
  • Maximize component values through herd management
  • Engage with CDI's sustainability programs
  • Stay informed on California dairy policy through CDI communications
  • Training & Support

    Training: Member meetings, industry events

    Support Channels: Field representatives, member services

    Community: California dairy community connections

    Pricing

    Model: California Milk Pricing with Component Values

    California's Unique Pricing System

    California operates under a unique milk pricing system separate from Federal Milk Marketing Orders (until recently joining the Federal Order system).

    Component Pricing

    | Component | Pricing Basis |

    |-----------|---------------|

    | Butterfat | California/Federal Order $/lb pricing |

    | Protein | California/Federal Order $/lb pricing |

    | Other Solids | California/Federal Order $/lb pricing |

    California-Specific Elements

    | Element | Description |

    |---------|-------------|

    | Quota Milk | Premium price paid on quota pounds (based on historical production rights) |

    | Overbase Milk | Market price paid on production above quota |

    | Pool Adjustments | Regional and market adjustments |

    Quality Premiums

    | Premium | Description |

    |---------|-------------|

    | SCC Premium | Low somatic cell count earns premium pay |

    | Bacteria Count | Low bacteria counts = higher quality premium |

    | Component Content | Higher butterfat/protein content increases value |

    Standard Deductions

    | Deduction | Amount | Description |

    |-----------|--------|-------------|

    | Hauling | Varies | Transportation to processing facilities |

    | Checkoff Assessment | $0.15/cwt | National dairy promotion |

    | California Promotion | Varies | State-level dairy promotion |

    | Equity Retention | Portion | Builds member ownership |

    Cooperative Benefits

    | Benefit | Description |

    |---------|-------------|

    | Scale Efficiency | 17 billion lbs processed annually = cost advantages |

    | Export Access | Strong position in global dairy ingredient markets |

    | Patronage Dividends | Member share of cooperative earnings |

    | Equity Building | Accumulate ownership stake over time |

    Market Context: California produces ~20% of U.S. milk. CDI is the largest California cooperative.

    Contact: californiadairies.com

    Evaluation Questions

  • What are CDI's membership requirements?
  • How does California milk pricing work?
  • What quality programs and premiums are available?
  • How does CDI's equity program work?
  • What member services does CDI provide?
  • Recommended Reading

  • [About CDI](https://www.californiadairies.com/about/) (California Dairies): Overview of the cooperative
  • [Our Farms](https://www.californiadairies.com/our-farms/) (California Dairies): Member farm information
  • [Products](https://www.californiadairies.com/products/) (California Dairies): CDI's dairy products
  • Key Features

    • California Market Leadership: Largest cooperative in the nation's top dairy state
    • Processing Scale: 17 billion pounds of milk processed annually across CDI facilities
    • Diverse Product Portfolio: Butter, powders, and ingredients for multiple market channels
    • Export Capabilities: Strong presence in international dairy ingredient markets
    • Member Equity: Cooperative ownership builds farmer equity over time

    Advanced Features

    • Quality Programs: Comprehensive quality assurance supporting premium market access
    • Risk Management: Tools and programs for managing price volatility
    • Sustainability Initiatives: Environmental stewardship programs for member farms
    • Industry Advocacy: Active engagement on California dairy policy issues

    Ideal For

    Farm Types: California conventional dairy, Large-scale operations, Multi-generation farms

    Competitive Advantages

    What sets California Dairies Inc. Membership apart from alternatives:

    • Largest cooperative in California, the #1 dairy state
    • Scale efficiencies in processing and marketing
    • Strong position in global dairy ingredient markets
    • Focus on quality and food safety
    • Farmer-owned governance and returns

    Pricing Information

    Here is the pricing information for California Dairies Inc. Membership:

    CDI pays members based on California's unique milk pricing system, which includes quota and overbase milk, component values, and market adjustments. California has its own pricing regulations separate from Federal Orders.

    Pricing Model: California milk pricing with component values

    California milk pricing is unique in the U.S. Contact CDI for current pricing structure and membership information.

    Pros & Considerations

    Advantages:
    • Largest California dairy cooperative
    • Significant market presence and influence
    • Member equity and patronage
    • Multiple market outlets
    • Quality programs and premiums
    Considerations:
    • California-focused membership
    • Large cooperative dynamics
    • Pricing follows federal and state orders
    • Membership requirements apply

    Implementation & Setup

    How to implement California Dairies Inc. Membership on your dairy operation:

    Implementation Timeline: Membership application and approval; coordination with CDI field staff

    Training & Support

    Training and support options available for California Dairies Inc. Membership:

    Support Channels:

      Evaluation Questions

      Key questions to consider when evaluating California Dairies Inc. Membership:

      1. What are CDI's membership requirements?
      2. How does California milk pricing work?
      3. What quality programs and premiums are available?
      4. How does CDI's equity program work?
      5. What member services does CDI provide?

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