Guernsey Farms Dairy is looking to expand its delivery services beyond its current 60-mile radius.

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The use of bovine growth hormone (BGH) is a big issue in the dairy industry, and many dairy product manufacturers are banning it from their products. However, Northville, Mich.-based Guernsey Farms Dairy has never used BGH in its milk – a testament to its commitment to quality.

“We have always kept BGH out of our supply,” owner Marty McGuire says. “We didn’t think it was good for consumers, the cows or the industry. Now we’re seeing the big guys move to BGH-free products – but we’ve been there for years.”

From its 28,000-square-foot facility, Guernsey Farms Dairy each month produces 174,000 gallons of milk and 10,000 gallons of ice cream. The company also produces heavy whipping cream, sour cream, dip, yogurt, buttermilk, eggnog, lemonade, hot fudge, chocolate syrup and butterscotch.

Guernsey Farms Dairy’s products are sold through a variety of channels. McGuire says about 15 percent of sales are through independent grocery stores, 70 percent through grocery chains and 15 percent through its own restaurant and ice cream parlor.

“We have about 450 retail customers that we sell to,” McGuire explains. “We have a fleet of five trucks that we use for deliveries, and about 15 distributors that come and ship our products.”

Currently, Guernsey Farms Dairy is limited in its distribution reach – about a 60-mile radius from its facility – but McGuire says the company is working to expand its delivery radius. “We’re looking at interstate shipping this year,” he notes. “We know a lot of people would love our products if they had the chance to try it.”

Guernsey Farms Dairy was founded in 1940 by John McGuire. Still family owned and in its second generation of leadership, the company continues to hold true to its commitment to using only the finest ingredients. The company’s raw milk is supplied by the National Farmers Organization, a cooperative based in Iowa.

Guernsey Farms Dairy handles all the processing “from start to finish,” Marty McGuire notes.

Guernsey Farms Dairy Restaurant and Store is located at the same site as the processing plant. The family style restaurant specializes in traditional American fare and desserts made with Guernsey’s ice cream. Outside the restaurant is Guernsey’s ice cream parlor, with more than 48 flavors of ice cream available for cones and other fountain treats.

New Flavors
Introducing new ice cream flavors is an ongoing goal for Guernsey Farms Dairy, and McGuire says new flavors are tested out in the ice cream parlor before being sold by the carton. “We strive to put out two to three new flavors of ice cream each year,” he says. “We try to make room for new flavors by getting rid of the older ones, but sometimes they are so good, our customers won’t let us.”

Caramel macchiato, cinnamon swirl, grasshopper, blue moon and birthday cake have been some popular new flavors. Seasonal favorites, such as pumpkin, eggnog and peppermint, are also top sellers.

However, butter pecan is what put Guersey Farms Dairy on the map. “People magazine held an ice cream tasting contest in the ‘80s, and our butter pecan was selected as the No. 4 top ice cream in the United States,” McGuire recounts. “We went from selling 200 half-gallons of butter pecan a week to 2,000 gallons overnight. That exposure really got a lot of people hooked on our ice cream.”

Guernsey Farms Dairy also identifies new milk products, such as strawberry-flavored milk, which McGuire says is taking off.

Maintaining Quality
Keeping its facilities up to date helps Guernsey Farms Dairy develop new products and keep its production levels high. McGuire says the company recently invested in a new packaging machine, freezer and creaming system.

Elopak is one of Guersey Farms Dairy’s equipment suppliers, and McGuire says the company opens its New Hudson, Mich., branch to Guernsey Farms Dairy for small-batch testing.

“They are a very good supplier to us,” McGuire stresses. “We do testing at their plant to identify new products and packaging options, and they are probably one of the reasons we are still here.”

McGuire points out that the dairy industry faces consolidation and competing with the large players remains a challenge.

“In the last 10 years, the number of dairies across the country has gone down by about 50 percent,” McGuire says. “We think that we’re still here because of our commitment to freshness and quality. Because we’re a smaller dairy, our supply comes from a limited number of farms and our products are very consistent.”

The company’s family foundation also works in its favor. “We’re still a family business,” McGuire says. “We have 43 grandchildren and 60 great-grandchildren. There are about 25 total family members in the business – with my three brothers and I as owners. My dad always said, ‘Quality isn’t expensive, it’s priceless.’

“He passed that message on to us and we’ve passed that on to our kids,” he says. “We hope that message goes on in this company forever.”