California Dairies, Inc. is the number one dairy cooperative in the number one dairy state in the United States. California Dairies, Inc. is the result of a successful 1999 merger of three of California's most financially successful cooperatives; California Milk Producers, Danish Creamery and San Joaquin Valley Dairymen. All three cooperatives were rich in tradition and established their roots back near the turn of the 20th century.

California Dairies, Inc. is owned by 628 California dairymen who ship over 18 billion pounds of milk to be sold and processed annually. These members have over $130 million of equity invested in the Company. The Company has sales of $3.5 Billion in all 50 states and 52 foreign countries. The owners have dairies located from San Diego County in the south to Marin County in the north. Most of the milk supply is located in the San Joaquin Valley from Kern County to San Joaquin County.

Plants

California Dairies' processing plants are strategically located throughout its milk procurement area. This allows for maximum efficiencies in milk receiving and milk transportation cost savings.

The plant in Artesia is primarily a condensing and bulk fluid products plant. It serves as a balancing plant for the huge southern California fluid sales market.

The next plant to the north is located in Tipton. This is one of the largest plants in the nation and is set up to dry milk, manufacture butter and make a variety of condensed products.

Visalia is the next plant going north. It is CDI's newest plant and is built on a 55-acre site east of Visalia. Construction started in 2006 and the plant began receiving milk in February 2008. It is equipped with the largest single evaporator-dryer unit in North America.

Fresno is the next plant going north and has a number of dryers and extensive butter churning and printing lines.

The Los Banos plant has a number of dryers also, and can do specialty products. This plant also condenses and makes cheddar cheese for manufacturing.

The plant furthest north is located in Turlock. This plant has state of the art equipment producing powders and a variety of different consumer size packages of butter.

Most of the plants are capable of producing low, medium and high heat nonfat dry milk powder, dry whole milk powder and dry buttermilk powder.

Subsidiaries and Affiliates

California Dairies, Inc. is the sole owner of Challenge Dairy Products, Inc. Challenge Dairy provides a complete line of butter products to the retail trade as well as a diversified line of products to the food service and food ingredients business.

Another wholly owned subsidiary is Los Banos Foods, Inc., located in Los Banos. Los Banos Foods, Inc. manufactures and sells cheddar cheese for manufacturing.

California Dairies, Inc. is also the major shareholder in DairyAmerica, Inc. DairyAmerica markets dairy products throughout the United States and internationally. DairyAmerica handles about 2/3 of all milk powder produced in the United States and has exported milk powder to over 40 countries worldwide.

California Dairies, Inc. is a member of numerous organizations within the dairy industry including The Alliance of Western Milk Producers, American Dairy Products Institute, American Butter Institute and California Creamery Operators Association.

California Dairies, Inc. is constantly looking to expand markets and products to meet the needs of its customers.