One of the major factors for small independent dairies to stay in business was to control costs. As the large dairy chains developed and grew, they were able to buy supplies and equipment at much lower prices than their smaller competitors. This gave the large companies a great advantage over their competition.

Many of the independents realized that if they were to stay in business, they would need to have the same price advantages as the large companies. The only way they could buy supplies and equipment in the same quantities as the big chains was to pool their orders together. This was tried on a limited basis without much success until 1937. In that year a group of smaller independent dairies in Iowa formed the first successful buying group of its type in the nation.

R.O. Linder organized the Iowa buying group. Mr. Linder invited those who were interested in saving money on their purchases of supplies and equipment to a meeting at the Fort Des Moines Hotel, Des Moines, Iowa. Thirty-two men attended the meeting with twenty-one of them agreeing to organize the Iowa Dairy Products Cooperative Association.

The first product the association purchased as a group was strawberries to be used in the manufacture of ice cream. The strawberries were delivered to one location and each member picked up his share of the order. With the success of this first order, the buying group was up and running. At the end of the first year of operation in 1937, the annual purchases were $53,690.29 representing savings to the members of $6,470.12.

On June 14, 1938, a formal organizational meeting was held. At that time companies in Minnesota and Wisconsin were being included, so the name was changed from the Iowa Dairy Products Cooperative Association, Inc., to United Dairy Cooperative Association. At this time, a Board of Directors was elected from within the membership.

As business began growing, Mr. Linder was appointed full-time manager and reported to the Board of Directors. When the association was first organized, it was expected to be only for dairies located within the state of Iowa. News of its success soon spread and this prompted the moving of the office from Perry, Iowa to Mason City in 1942, making it more centrally located within the territory being covered. During this year some of the major items purchased by the association were bottle caps, ice cream cartons, paper cups, hose, parchment paper, ice cream cabinets, ice cream flavorings, and gelatin for stabilizing ice cream. Gelatin for ice cream was three cents per pound.

In January 1970, an advisory committee was appointed by the Board of Directors to plan strategy to begin a buying program for a number of Pepsi Cola bottlers in California, Oregon, and Washington. In 1971, the decision was made to aggressively expand the program to the rest of the nation.

Because of the confusion created by United Dairy having a large number of non-dairy members, a new trade name was created. In 1979 United Dairy started doing business as Allied Purchasing.

A different concept in group purchasing was launched in 1982. At that time, a select group of large dairy members within the association were organized into a small segregated buying group. They would each provide one person to serve on a buying committee who would interview various competing suppliers for a specific product. Each member would commit to purchase a set amount of products from whichever supplier the committee chose. These buying committee meetings were led by a staff person from Allied Purchasing. This new concept became very successful and since the group operated differently from Allied Purchasing, a separate corporation was established. National Purchasing was started and operated by Allied Purchasing Co., since it had no employees, on a management fee basis as it was a subsidiary.

The success of the soft drink program prompted continued research into different markets. Throughout the years group purchasing was added in the following areas: bottled water, integrated supermarkets, and breweries. Each group has a little different need but they have realized substantial savings through group purchasing.

MISSION STATEMENT

The mission of Allied Purchasing is ....

....to assist food industry members in achieving low cost producer status through advantageous purchasing programs and information exchange.

....to provide qualified suppliers a mutually beneficial relationship.

....to ensure a positive work environment for its employees.

....to grow into the future through carefully planned expansion in related industries throughout selected areas of the world.