SmithFoods: No jobs lost in sale of two out-of-state dairy processing facilities

ORRVILLE – SmithFoods has sold two out-of-state processing facilities to Dairy Farmers of America, a farmer-owned dairy cooperative headquartered in Kansas City, Kansas, both companies announced this week.

The price tag of the sale will not be disclosed, said Penny Baker, vice president of product marketing for the Orrville-based SmithFoods.

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Located in Richmond, Indiana, and Pacific, Missouri, the two extended shelf-life facilities use high temperatures to process dairy and plant-based beverages and ice cream mixes, according to SmithFoods.

Dairy Farmers of America officially acquired the locations on Aug. 1, the DFA said. They will become part of the DFA Dairy Brands division and will operate as Richmond Beverage Solutions and Pacific Dairy Solutions.

Plant operations will not be disrupted, the DFA said. All existing employees and management team members will retain their positions.

SmithFoods does not anticipate any jobs will be lost in Orrville following the transition.

"There is no change in ownership (in Orrville), and we will continue to operate as usual," Baker said.

Looking to the future

While SmithFoods will lose two operations, President and CEO Nat Schmid hopes it will allow his company to focus on its Orrville-based facilities and grow its brand.

“(Extended shelf-life) has been a growing line of business for us, and the timing was right to partner with DFA andintegrate these two facilities into their manufacturing network," he said. "The transaction furtherstrengthens the future of those plants and sets SmithFoods up for continued growth in our Ohio-based operations.”

This acquisition will allow Dairy Farmers of America to expand their business via commercial investments and operational space, said Pat Panko, executive vice president of the DFA and president of DFA Dairy Brands North.

“With the addition of these plants, we have an opportunity to not only grow our customer base but also create synergies between our other extended shelf-life and aseptic facilities," Panko said in the DFA news release.

Reach Bryce by email at bbuyakie@gannett.com

On Twitter: @Bryce_Buyakie