Kemps Buys Fargo Creamery From Associated Milk

The deal, the financial terms of which were not disclosed, includes the rights to the Cass-Clay brand in addition to a Fargo milk processing plant.

A Fargo creamery has changed hands between two locally based dairy product producers.

New Ulm-based dairy marketing cooperative Associated Milk Producers, Inc., said Monday that it has agreed to sell its Cass-Clay milk processing plant to St. Paul-based Kemps, LLC-which markets milk, ice cream, and related dairy products under the Kemps brand.

Financial terms of the deal were not disclosed.

Kemps will acquire the rights to the Cass-Clay brand-which includes milk, ice cream, and cultured products like yogurt and sour cream-in addition to the milk processing plant, Associated Milk said in a news release. The company will continue to manufacture and market the line of dairy products after the transaction is completed.

Associated Milk is owned by 3,000 dairy farmers-and they will remain the exclusive milk suppliers for Cass-Clay products.

“We are excited about building on the heritage of the Cass-Clay brand,” Kemps CEO Jim Green said in a statement. “We look forward to providing fresh Cass-Clay milk from local farms for years to come.”

Associated Milk is among the nation's 25-largest revenue-producing co-ops. Its 2010 sales totaled $1.7 billion.