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HISTORY In the 1950's, the dairy industry on Prince Edward Island faced a period of change and challenges. The Island landscape was dotted with many small dairy plants serving dairy farms within limited geographic areas. Most operated seasonally and specialized in one product, such as cheese or butter. This resulted in dairy producers delivering large volumes of milk when pasture conditions permitted and essentially stopping shipments during the winter months. This caused a wide range of business inefficiencies and also resulted in a poor return to producers and processors. Some people believed that the industry could increase profitability by replacing all of the small community dairies with one large, diversified processing facility located centrally and equipped with the latest technology. All of the communities had strong loyalties to their local dairy, and numerous meetings were held to debate the proposed changes before they were accepted by the shareholders of these small cooperatives. Amalgamated Dairies Limited was founded by a Special Act of Incorporation, enacted by the Lieutenant-Governor and the Legislative Assembly of Prince Edward Island in April, 1953. The Association's objective was to establish a central cheese, butter and milk processing plant at Summerside. This plant would amalgamate the existing cheese and butter manufacturing businesses of: The Dunk River Dairying Company, The Kensington Dairying Co-operative Association Limited, The Tryon Dairying Company, The Abram's Village Dairying Co-operative Association Limited, The Grand River Dairying Co-operative Association Limited and The Tyne Valley Dairying Company. The purpose of the company was to manufacture and process dairy products, and to buy and sell any products required by Association members. The most important goal was to promote the economic welfare of its members by utilizing their united funds, thus promoting greater stability in the P.E.I. Dairy Industry. The policy direction and management of the Association was vested in a Board of Directors. The members were elected annually and each member represented one of the various amalgamating entities. A manager and staff were hired to carry on the day-to-day activities of the dairy. Membership in the association consisted of the shareholders of the amalgamating companies. Additional shares were (and still are) issued to milk and cream producers at the end of the fiscal year in proportion to the volume of milk and cream they deliver during the year. The shares issued are paid for by Association profits and are issued to shareholders at no cost. One feature of the Association that distinguishes it from a Cooperative is that our shareholders must withdraw their investment in the Association when they cease active participation as dairy producers. This restricts membership to active dairy producers who support the Association by delivering their farm production for processing and marketing. The ADL Board has always viewed growth as the key to success. ADL began its initial expansion with the purchase of the O'Leary butter factory in 1955. At that time, the factory had egg, poultry and butter departments. This allowed ADL to provide services to the western part of the Island. It also led to the addition of 3 new positions on the Board of Directors. 1958 saw the purchase of the Olympia Ice Cream Company, a brand that we continue to produce today. In the 1960's, the dairy industry improved efficiency by installing a large number of bulk milk tanks that required tanker truck pick-up. In 1967, each producer was assigned a share of the Canadian milk market referred to as a "quota", and the supply of raw milk was managed to meet market demands. In the 1980's, ADL purchased a small butter factory known as the Crapaud Creamery Company. Buttercup packaging was installed for the purpose of servicing the major suppliers of butter portions under various co-packaging arrangements. In 1983 ADL constructed a multi-temperature food distribution warehouse, built to serve the retail and institutional market with a full line of food and food service-related products. ADL entered the fluid milk market with the 1986 purchase of Maple Leaf Dairy and the 1987 purchase of Garden City Dairy. Both facilities continue to operate today after receiving significant investments in buildings and equipment. In 1991, the bankruptcy of Perfection Foods Limited caused a significant reorganization of the P.E.I. dairy industry. ADL purchased the Island assets from the receiver and operates the facility as a canned evaporated milk plant. In 1992, we made a strategic decision to move away from total reliance on traditional Canadian Cheddar cheese products to diversify our product mix, including more European-style specialty cheeses. Production of Havarti cheese began in 1992. Production of Feta cheese began in 1993 and has achieved significant volumes. During 1993 we began the production of small amounts of spiced Havarti. We developed "lite" and fat-reduced Feta in 1997, followed by spiced Feta and 40% fat-reduced "lite" cheddar cheese. In 1993, ADL purchased a local abattoir named Farm Enterprises Inc, which processes beef and hogs for custom and retail markets. In 1997 Johnston's Tire and Automotive was purchased, which supplies a much-needed list of parts and services to our farming and trucking community. Our Association is built on the concept of partnership between individual producers, our combined membership, and our customers. We will continue to evaluate new acquisitions, technologies and methods that make that partnership stronger. Amalgamated Dairies Limited will also continue to treat our members and customers as important partners in our business, and we thank you for your continued support.
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