AMPI reports record-setting 2007

Delegates review results at dairy co-op annual meeting

BLOOMINGTON, Minn. (March 24, 2008)—Associated Milk Producers Inc. (AMPI), a leading Midwest milk marketing cooperative, reported a record-setting performance for 2007.

 “The value of your investment in AMPI is growing,” President and Chief Executive Officer Mark Furth told 400 annual meeting delegates and guests gathered at the Sheraton Bloomington Hotel. “In 2007, AMPI earnings reached $24.8 million—an all-time high.”

 Furth said the farm-to-market dairy business exceeded all budget expectations by:

·        growing consumer-packaged butter sales following a fire that nearly destroyed the manufacturing plant;

·        increasing processed cheese sales to the food service sector; and

·        exporting milk solids to a growing world market.

 AMPI further diversified its line of value-added dairy products by acquiring North Dakota-based Cass-Clay Creamery and its Cass-Clay^® brand of dairy products. Fluid milk, ice cream and cultured dairy products are now part of the AMPI product portfolio.

 Dairy product sales, membership, milk volume and owner equity increased sharply, strengthening the business owned by Midwest dairy farmers. In 2007, the owners also shared $9.7 million in prior years’ earnings and equity payments.

 “As an AMPI owner, I can find many reasons to take pride in this company, particularly after a stellar 2007 performance,” said AMPI Board Chairman Paul Toft, a dairy producer from Rice Lake, Wis. “We own what Wall Street traders call a ‘blue-chip’ company. It’s a well-established business that is financially sound, providing a consistent return on our investment.”

 The annual meeting culminates tomorrow with delegates considering resolutions and reviewing the cooperative’s legislative priorities.

Operational highlights

Member Farms – 3,600

Member Volume (lbs.) – 5.5 billion

Sales – $1.6 billion

Earnings – $24.8 million

Equity Payments – $9.7 million

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About AMPI: Associated Milk Producers Inc. (AMPI) is a leading milk marketing cooperative with 3,600 member farms, 5.5 billion pounds of milk and $1.6 billion in annual sales. Members operate dairy farms located throughout the Midwest states of Wisconsin, Minnesota, Iowa, Nebraska, South Dakota and North Dakota. They own 15 manufacturing plants and market a full line of consumer-packaged dairy products, including the Cass-Clay^® brand. For more information about AMPI, visit the cooperative’s Web site at www.ampi.com.