The Federal Dairying Company was orgainzed in 1901, in Eldon Prince Edward Island, as a stock company under the Dairy Act of PEI. Its first annual meeting was held on the 15 January 1902, which was presided over by Nathanial Larrabee, president, and Simon A. Nicholson, secretary. The financial statement at that meeing reported that subscribed stock amounted to $1,930. During its first twelve years of operation, the butter factory took in whole milk and separated it at the plant. As the number of privately owned cream separators increased, milk was no longer accepted but cream instead. Patrons delivered their own cream to the plant until 1940, after which cream routes were arranged. A more modern building was erected in 1958 and served communities of Kings, as well as part of Queen's County. Between 1990 and 1993, the Federal Dairying Compnany sold off their assetts to the Montague Dairy Ltd. and the Souris Buttercup Dairy Ltd.