Growth Strategy
American Dairy's products enjoy a reputation for high quality and freshness. Our respectable name continues to grow through word-of-mouth and also from favorable press coverage. American Dairy continues to build upon the reputation of its products by strengthening its brand identities, making its products more widely recognizable.
American Dairy will seek to extend the distribution of its products to contiguous markets with high population concentrations. If American Dairy can successfully implement its growth strategy, American Dairy will also seek to enter other markets through joint ventures, licensing, or other arrangements with local dairy farms. The key elements of American Dairy's growth strategy to reach its goal include:
Broadening customer base. American Dairy will seek to broaden its customer base by offering fluid milk products for sale in no-return containers.
Increasing sales of solid milk products. American Dairy will seek to increase its sales of solid milk products, such as yogurt and cheese, which have greater profit margins, significantly longer shelf life, and are more cost effective to distribute than fluid milk products.
Emphasizing local production and distribution. Our marketing efforts will continue to emphasize the local production and distribution of our products, which begin with the purchase of raw milk from local farmers and resulting in premium quality products.
Milk Processing
By purchasing raw milk locally and employing efficient processing techniques, American Dairy is able to preserve the fresh taste of milk. Most other large regional dairies may process raw milk that is up to three to four days old. Milk processed by the conventional method is typically stored at the farm for a minimum of two days, spends a full day in transit to the dairy facility, and is only processed the following day. However, American Dairy processes raw milk within 24 to 36 hours after milking because of our location, size, and efficiency.
American Dairy's milk is not homogenized. During homogenization, pressurized milk is forced through openings smaller than the size of the fat globules present in milk, breaking them into smaller particles. Thus treated, the milk fat remains suspended and does not separate out in the form of cream. American Dairy believes that this process adversely affects the taste and feel of milk. In addition, American Dairy's milk is pasteurized at the lowest temperatures allowed by law and safety to avoid imparting a cooked flavor to the milk. When the milk is clarified and the butterfat removed to yield cream and skim milk, a process of cold separation is used, rather than the more commonly employed hot separation, to preserve the favor of the milk.
Dairy Product Processing
American Dairy's products are made in small batches using minimal processing techniques to maintain freshness, allow maximum flavor, and retain nutrition. They are made with wholesome ingredients, with no added chemicals. Because they are produced locally, our post-production dairy products reach consumers in American Dairy's marketing area sooner than most other dairy products. To assure product quality, the beginning of each production run is sampled for flavor, aroma, texture, and appearance. In addition, inspectors conduct spot-checks for bacteria and butterfat content in its products, as well as sanitary conditions in its facilities, on a regular basis.
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