Happy cows are MVPs at historic dairy near San Diego — Hollandia Dairy

When you shop for milk at the grocery store, you may be checking the label for an expiration date and clues about how the milk was produced. For Hollandia Dairy in San Marcos, California, the label tells a story about one family’s deep roots in dairy farming, from life in Holland to a successful milk operation in California.

The dairy has humble origins. In 1949, Arie de Jong left Holland with his wife and 10 children for a fresh start in a rural area north of San Diego. Just one year later, in 1950, the de Jong family purchased their own dairy farm in Escondido.

Today, Hollandia is widely respected as one of the oldest independent producer and distributor dairies in the state, with milk sold in hundreds of stores across southern California. Patrick Schallberger is CEO at Hollandia Dairy, where he focuses on helping the business grow and evolve while staying true to its local roots.

“We’re committed to finding ways to meet our consumers’ needs, because the consumers today are different than they were 20 years ago,” said Patrick. “In this industry, you have to be really consumer focused because if you don’t listen to the consumer and you don’t change, then you’re not going to be around.”

What sets Hollandia apart from its competition? Patrick said the dairy’s milking and processing operations are within 50 miles of each other, meaning that each gallon of milk is locally made and fresh on the shelf, going from cow to consumer in less than 24 hours.

Innovation at a legacy dairy

The dairy industry has weathered decades of economic challenges, especially during the Great Recession and more recently with rising costs and declining milk prices. Despite these headwinds, Hollandia has stayed focused on fundamentals during times of lower milk prices, inflation and shifting consumer preferences.

Jack Rose, the dairy’s chief financial officer, said that new tools, including an app for machine operators to share feedback and troubleshoot issues, have also made the operation run more smoothly – and cost effectively – than ever.

“We track everything in an accounting fashion, and to make sure that we’re getting our dollars and cents worth of value for all our farmers,” said Jack. “I believe our strength is in our ability to digitize the operation and transform our business into numbers that we can use to make improvements.”

Gregg Warren is head of corporate lending at American AgCredit, which has partnered with Hollandia Dairy for three decades. He said working with Hollandia Dairy has been a rewarding experience, one that has been built on a sense of trust and a mission to serve agriculture.

“It’s a great relationship and it has been fun to watch the company grow and succeed,” said Gregg. “To realize the jobs they’re creating, the lives that they’re changing, and the part of agriculture they continue to serve. The relationship works with trust, integrity and communication, and if there is something that they need as a customer, they know who to contact and they know the right questions to ask.”

Staying true to dairy’s local roots

Hollandia Dairy was once part of a community of countless farms and dairies in southern California. Today, they are the last dairy processing plant still running in San Diego County.

“I have a deep love for San Diego County, and to be CEO at the only milk processing plant in the county is like a dream come true,” said Patrick. “I never thought I was going to still be able to be involved in the dairy industry, so to be involved in keeping this business successful and working with the family is what motivates me every day.”

Local agriculture takes center stage at the San Diego County Fair, which has run every summer since 1880. Hollandia Dairy has become known for hosting a live milking demonstration, which gives kids and adults a detailed look at how cows are milked. It’s one way that Hollandia tells their story and educates the public about dairy farming.

“We’ve done the milking demonstration for the last three or four years at the fair,” said Patrick. “People love it, and we see it as a great way to educate and share our story. When you don’t share your own message, then others are going to tell the story and often tell it in a different way.”

Patrick said the dairy’s formula for success has been focusing on happy cows, healthy milk and products that delight the consumer. That’s no easy feat in a large dairy business, but Patrick said the joy of seeing a satisfied customer makes it all worthwhile.

“We make sure the cows are comfortable with fresh water and fresh feed daily,” said Patrick. “They need to be milked two or three times a day. All of the [Hollandia] owners are out in the dairies every morning, talking to their workers to see what’s going on. Dairy farming is hard work, but people love it, right? So that’s what drives us to work in this industry every day.”