
DATE: Friday, August 8, 1997                TAG: 9708060179

SECTION: CHESAPEAKE CLIPPER      PAGE: 06   EDITION: FINAL 

SOURCE: BY SCOTT MCCASKEY, CORRESPONDENT 

                                            LENGTH:  126 lines

THE MILKY WAY CHANGE IN OWNERSHIP, INCREASE IN ADS AND PRODUCTS BRING YODER DAIRIES BACK FROM THE BRINK OF EXTINCTION.

IN THE EARLY 1960s, Kenneth R. Miller drove a milk route for Yoder Dairies. He was following in his grandfather's, father's and uncle's footsteps.

So it wasn't that far-fetched when Miller, now owner of a successful garage door installation business, came to the rescue of Yoder, which he heard was on the brink of closing last fall.

``After all those years, they were just going to close down,'' said Miller, 58, who lives off Mount Pleasant Road in Chesapeake. ``It was a co-op, and a lot of the partners wanted to get their shares and get out. I made them an offer, and we negotiated a deal. I knew there was money still to made in the home delivery of milk.''

Miller bought Yoder Dairies Inc., located at 5102 Princess Anne Road in the Kempsville section of Virginia Beach, on Sept. 1, 1996. Since that time, he estimates sales have increased by 10 percent, and the customer base is up to about 5,000 homes in Chesapeake, Norfolk and Virginia Beach.

He attributes much of the increase to advertising. Yoder, along with Bergey's Dairy Farm Inc. in Chesapeake, are the only two dairies in Virginia that still offer home delivery, according to the State Milk Commission office in Hampton.

``Advertising and word-of-mouth has let more people know you can still get home-delivered milk,'' Miller said. ``The milk is locally produced, fresher, and it tastes better in glass bottles.''

While Miller's wife, Elsie L. Miller, helps run the garage door business, his daughter, Maria M. Olah, is the general manager of Yoder.

``There are a lot of transients in the area that didn't know they could get milk like in the old days,'' said Olah, 28. ``It's public awareness and convenience that have boosted orders.''

For Chesapeake resident John R. Cash, home delivery is not the main selling point.

``It's not the convenience, it's just better tasting milk,'' said Cash, 32. ``Plus, I like to support the little guy.''

His wife agrees.

``Yoder has been known for its quality for years,'' said Tina M. Cash, 34, who grew up in Virginia Beach. ``And their cows aren't given steroids.''

The company gets its milk from two producers, Lehman Farms, and Wenger Farms, both in Chesapeake. Maria Olah says that unlike some brands you find in the store, Yoder's milk producers do not use growth hormones.

In addition to milk, both white and chocolate, the company delivers whipping cream, juices and fruit punch. An average home delivery is about two half-gallons of milk a week, at about $15 a month, although one family gets 23 half-gallons a week.

There is no commercial selling of Yoder products, except at the company headquarter's retail store, which also offers locally grown produce.

Elsie A. Miller - no relation to the owners - is the bookkeeper for the store. The 62-year-old Chesapeake resident has worked for the company for 38 years.

``In the old days, the milk was brought in by cans from 20 different farms,'' she said. ``Now, we get it in tank trucks from two farms. But there are still some old faces around here.''

Elsie's brother, Lester M. Miller, is the plant manager and has been with the company for 28 years.

``We got computers and tank trucks, but the friendly attitude and a lot of faces are still the same,'' said Lester Miller, 52, a Virginia Beach resident.

Yoder Dairies was established in 1929 in Princess Anne County by Elmer and Eli Yoder. Of Amish faith, the brothers hired many employees from within the Amish and Mennonite communities, as did the family's second generation. Approximately half of today's staff of 30 employees are Mennonites, including the new owners.

``We're known as hard-working, honest people,'' Kenneth Miller said.

The company became a co-op in the late 1930s, with many area milk farmers joining the group. In the 1950s and early '60s, the dairy's customer base was nearly 10,000 homes, mostly in Virginia Beach and Norfolk.

But over the years, as the price of land and taxes went up, many of the area farmers sold their property to developers. Along in age, several of the 18 members of the co-op had been looking to get out of the business and cash in their shares for the last several years.

``What they would have done is close up the business and sold the land,'' Kenneth Miller said. ``I was one of the only people interested in keeping the dairy.''

Miller and his daughter say they are encouraged by the jump in sales since they took over the operation. They have plans to expand milk routes and the product line within the next year. At present, they serve most of Chesapeake, except for Western Branch and Hickory, areas they hope to deliver to in the near future.

``About 20 percent of our base is in Chesapeake, but we hope to expand that as the city continues to grow,'' Kenneth Miller said.

The company also has plans to eventually deliver in Suffolk.

Other dairy products, such as yogurt, will be available for delivery as early as this October. Bread could be offered, too.

``Customers tell us that if we delivered bread, they could save $20 a week in impulse buying when they take their kids to the grocery store with the intention of buying only bread,'' Maria Olah said.

According to David W. Lawson, an auditor with the State Milk Commission office in Hampton, Yoder and Bergey dairies are among a rare breed, as the number of home-delivery operations dwindle across the nation.

``They're the only two home-delivery dairies in the state,'' Lawson said. ``Cheaper grocery-store prices have helped drive others out of business, but those two have found a niche. They both have very good products and loyal customers.''

Summer is traditionally the weakest time for home delivery of milk because it's the primary vacation season and people go out of town. Still, Kenneth Miller said that business is growing.

Chesapeake residents Dr. Francis E. Watson and his wife, Dianne W. Watson, have helped keep the summer numbers up.

``We've got five children, and they all love milk,'' said Francis Watson, 50, who won't reveal how much milk they receive. ``Yoder tells us that we're one of their best customers.'' ILLUSTRATION: [Cover, Color photo]

MORT FRYMAN

The Virginian-Pilot

William Morris of Yoder Dairies moves quart bottles of milk from the

capping machine to crates that will go in a cooler

Staff photos by MORT FRYMAN

It is no longer owned by the Yoders, but the dairy on Princess Anne

Road in Virginia Beach is still a Mennonite family business for

Kenneth Miller and his wife, Elsie.

A worker tightens a nut on top of the capping machine as he gets

ready to switch to quart-size bottles.

Staff photo by MORT FRYMAN

Kenneth Miller, who also is in the garage door business, chats with