Darigold to add new plant within global ingredients business

Dairy co-operative Darigold has announced plans to construct a new global ingredients plant and a series of executive appointments, as part of the strategic transformation of its global ingredients business.

The selection of a location for the “large-scale” plant is ongoing and will be announced in 2021, along with more specifics about the intended final products for commercialisation.

The Northwest farmer-owned cooperative is also streamlining its international distribution capabilities to complement production investments and has signed a lease for just over 284,000 square-feet of warehouse space.

Through constructing a new plant and warehouse, Darigold said there will be “substantial improvements” to its environmental footprint of enterprise-wide operations. This marks a major step toward achieving its goal to become carbon neutral by 2050.

In 2018, Darigold finalised a 10-year transformation and growth strategy of its global ingredients business which included a substantial series of capital investments, including the construction of a new plant.

The Seattle-based company has also announced a series of leadership changes which it says will drive organisational effectiveness and focus against the execution of this strategy.

Grant Kadavy will transition from his current role as COO to become Darigold’s chief growth and risk officer. In his new position, Kadavy will lead the integration of new products, services and processes into the rest of the company’s network and functions.

Meanwhile, Joe Coote will join Darigold as president of its global ingredients sector – a new position – after spending over 11 years at Fonterra. He will assume all operating responsibilities of the global ingredients business as well as oversee the corporate-wide global supply chain functions. 

“By creating new senior level positions, investing in the co-op’s largest capital project to date, doubling down on sustainability and streamlining distribution networks, Darigold is continuing to reinforce its commitment to be a leading global ingredients provider,” said Allan Huttema, chairman of Northwest Dairy Association (NDA).

Chris Stockwell, leader of the global supply chain for Darigold, added: “With increased warehouse capacity closer to Seattle and Tacoma ports, it will be easier to manage our global container business and it will enhance our partnerships with international shippers.”

Earlier this year, Darigold announced a $67 million investment in its Idaho production facility, as it seeks to meet the growing demand for its ultra-filtered, lactose-free milk product.