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.
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
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:
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
Recommended Reading
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
- Largest California dairy cooperative
- Significant market presence and influence
- Member equity and patronage
- Multiple market outlets
- Quality programs and premiums
- 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:
- 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?