Two leading dairy cooperatives in the Midwest announced plans to merge. The boards of directors of Cass-Clay Creamery Inc. and Associated Milk Producers Inc. approved the merger into one cooperative.

The merger will create a farmer-owned dairy marketing company with more than $1 billion in annual sales. Together, the cooperatives will provide a complete line of dairy products to a regional and national marketplace. To finalize the merger, the dairy farmer-owners of Cass-Clay must approve the transfer of assets to AMPI. That approval is expected in March, with the merger completed April 1.