NEW ULM — Despite facing a challenging 2020 due to the COVID-19 pandemic, Associated Milk Producers Inc. (AMPI) continued meeting its consumers’ demands and finished its fiscal year with strong sales and earnings.

AMPI, incorporated in 1969, finished the challenging year of 2020 with sales of $1.8 billion and earnings of $19.2 million.

“AMPI navigated market and demand highs and lows due to the global COVID-19 pandemic to finish its fiscal year with sales of $1.8 billion and earnings of $19.2 million,” AMPI Co-President and CEO Donn DeVelder said. “Cheese represented 66% and butter 13% of total sales. With more than 640 million pounds of natural and processed cheese produced, AMPI is the largest cheese cooperative based in the U.S.”

AMPI Co-President and CEO Sheryl Meshke said that the co-op’s natural cheese sales were up 13% from 2019, with Cheddar leading the way with growth of nearly 20 million pounds. Sales of Colby Jack and Habanero Jack followed Cheddar with a growth of about 15 million pounds. Total cheese production exceeded 640 million pounds.

Despite the strong year financially, AMPI was still faced with many challenges in 2020 and continues to have obstacles to overcome in 2021.

“Navigating the pandemic as an ‘essential’ food business continues to be challenging,” Meshke said. “From the beginning, the safety and security of the co-op’s employees, dairy farmer-owners and customers has been our top priority. Employees are meeting the challenge to keep AMPI strong, ensuring manufacturing operations run smoothly.”

Meshke added that prior to the pandemic, half of the cheese made in the United States was sold through food services.

“When restaurants and schools closed and orders slowed, the supply chain backed up and cheese and butter markets dropped to historic lows,” Meshke said. “Stay-at-home orders brought a resurgence in home cooking, with consumers buying more cheese and butter at grocery stores. From March through December, U.S. retail sales of natural and processed cheese grew more than 16%, and butter sales topped 25% compared to the same time period in 2019.”

AMPI, no stranger to racking up awards, continued to win in 2020.

“A handcrafted Aged Asiago made by AMPI cheesemakers from Hoven, S.D., earned the coveted Chairman’s Trophy for the second consecutive year at the National Milk Producers Federation Championship Cheese Contest,” AMPI Sr. Vice President of Operations Mike Wolkow said. “The co-op also earned first-place honors with a Mild Cheddar produced in Blair, Wis., and processed American Pepper Jack cheese made in Portage, Wis. At the World Championship Cheese Contest, a processed American cheese made in Portage placed first in its class. AMPI salted butter crafted in New Ulm, Minn., earned second place and the title of top U.S.-produced butter in the contest.”

One reason for AMPI’s continued growth and award-winning ways continues to be its innovation in coming up with new flavors and products.

AMPI Sr. Vice President of Sales and Marketing Marshall Reece said that AMPI’s cheesemakers are constantly looking for ways to keep up with changing tastes.

“Today’s cheese lovers are always looking for something new — whether it be flavor, variety or brand,” Reece said. “Our cheesemakers are constantly innovating to keep up with changing tastes, while staying focused on what they do best: making really good cheese that delivers a great bite every time. Chipotle, garlic dill and buffalo sauce are among new flavor profiles winning favor. We also continue to see positive growth from marrying Monterey Jack with peppers and spice — the hotter, the better.”

The Dinner Bell Creamery brand, launched in 2019, was slowed in distribution opportunities, but Reece said momentum for the brand was building and AMPI is excited for what’s to come.

AMPI continued giving back in 2020 also, with several donations assisting multiple communities.

AMPI Vice President of Public Affairs Sarah Schmidt said that AMPI’s donations this year showed the co-op’s commitment to communities.

“Donations made in 2020 underscored the co-op’s commitment to communities,” Schmidt said. “A $10,000 product donation by AMPI and its cleaning product supplier, Hydrite, provided a year’s supply of hand sanitizer and 540 pounds of butter to schools in New Ulm, Minnesota.

“Another $10,000 donation provided first responders with equipment and training for confined space rescues in O’Brien County, Iowa, home to AMPI’s Sanborn Division,” Schmidt added. “Discounted sales of Dinner Bell Creamery products helped feed hungry children in AMPI member states. Employees mirrored that support through contributions totaling $11,000 to local food pantries.”

For more information, visit www.ampi.com.