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Matanuska Creamery to Close SundayBeleaguered dairy producer shutters after state recalls nearly $900,000 in loansPALMER - Matanuska Creamery was filling one of its final orders. “We're going to be doing the chocolate school milk for Valley schools,” creamery pasteurizer Jaimie Church said. In a few days, the creamery will close its doors for good. “We know it's shutting down, and we're just... keeping going, so that we can get the product out.” After defaulting on nearly $900,000 in state loans, the decision to recall those loans was made earlier this month. The deadline for a reprieve from that recall has come and gone. And now, as the operation shuts down, so, too does a majority of the production of Alaska-grown milk, butter, and ice cream. Karen Olson is the CEO of Matanuska Creamery. She’s been running it since 2008. “We kept trying with the old Mat-Maid equipment, a little bit too low raw milk supply, and too high overhead,” she said about the creamery’s struggles. Matanuska Creamery acquired what Olson said was inadequate equipment after the Matanuska Maid creamery closed in 2007. “That's the fan club right there,” Olson said, pointing to a collection of dairy cow trinkets and letters of support from community groups and classrooms in the valley. Plastering the walls and filling office shelves, they were a reminder of local support the creamery enjoyed. “But on Sunday, we're gonna box it all up,” Olson said. Fifteen people will be out of work when the creamery closes. But for other dairy farmers in the Valley, the news could also mean an end. With only one other facility in Palmer that can process their raw milk — a facility whose owner says is already struggling to sell enough product — they’ll have few options. And in the wake of the closure, nearly a million dollars of defaulted state loans will also go down the drain -- defaulted loans that the state attorney general’s office says will ultimately see less than half of. “Suppliers, employees, farmers, customers, and private investors, all outta luck… and it's really a shame,” Olson said. |
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lluna said on Thursday, Jan 3 at 6:01 PM
saving 2 bucks could cost you 20 later on said today at 2:18 PM well not to burst the bubble of financial gains from buying the cheapest product, but WHERE it came from is important...dairy, eggs, meats all derive from WHERE they are raised...in the lower 48 on what farm? Local means the water is good, soil the best...you do the math...God only knows whats in the water and soil down there...they do need to lower the prices I agree...but the USDA needs to fund some of that so the prices are low!.................................................................................................................... OMG TO FUNNY, only idiots will fall for such BS, now unless you have "PROOF" that these farmers up here dont shot their animals up with the same chemicals that are "illegal" in most if not all other countries then *S/T/F/U* and sit down because it wouldn't matter whats in the water or ground..
110549725saving 2 bucks could cost you 20 later on said on Thursday, Jan 3 at 3:18 PM
well not to burst the bubble of financial gains from buying the cheapest product, but WHERE it came from is important...dairy, eggs, meats all derive from WHERE they are raised...in the lower 48 on what farm? Local means the water is good, soil the best...you do the math...God only knows whats in the water and soil down there...they do need to lower the prices I agree...but the USDA needs to fund some of that so the prices are low!
110541632Buy Local said on Monday, Dec 31 at 5:52 PM
When they price their products fairly, till then, ship it in. I'll save the "mere $2.00"
110331655start over then... said on Monday, Dec 31 at 1:38 PM
If I were you I would look to invest in local agriculture...if you want to eat...most of what we eat is shipped up here folks...I would look into a Co-op of sorts to market the local produce and set up greenhouses to grow other fruits and veggies in the winter...grow and sell local chickens and eggs...and grow grain in the summer...that is what the peoples need to do...or we will face a shortage of foods...may be that is why Captain Zippy had all these emergency food centers set up...no thanks...will buy local...
110318325rh said on Monday, Dec 31 at 10:53 AM
The local creamery is Havemeister Dairy, their products have been in the dairy case for months at Freddie's and Carr's. The milk is produced right here in by one of most stable of the local dairy farmers, the Havemeister family, who have been running their dairy here since the 1930s. I don't understand why more folks can't see the value in paying a mere 1.50-2.00 more per gallon for this excellent local product. Jeeze folks, you eliminate our dairy production, on any level, and we are right back to the 'island' status....one delay in shipping and our shelves are naked in days. Support local food production!!!
110307205Alaskan Support said on Monday, Dec 31 at 12:16 AM
Even if Mat Creamery received a million to cancel current losses, it's not able to operate without being subsidized, and I'm leary of the grant money misappropriation that occurred in the company a couple of years ago. The news report mentions another dairy producer operating in Palmer. I've not heard of that before and I haven't seen anything in the stores. Does anyone know anything about this other dairy production business or the name of it?
110271205Anonymous said on Saturday, Dec 29 at 6:37 PM
and yet the Paylins scale the fence with no penalty for ruining another aspect of alaska history? I heard Kristin Coles mom is a felon with extorting funds from people...so that is how Skarah learned how to steal and all those "helping hands" doing God's Will and all...
110212105Anonymous said on Saturday, Dec 29 at 11:10 AM
Hopefully this leads to more demand for SMALL local producers of raw milk and raw milk products, both cow and goat/sheep. It's healthier to both the economy and the consumer.
110193996bobbing for apples said on Friday, Dec 28 at 8:35 PM
We all knew it was going to close. I'm surprised it lasted this long. It's prices were too high for people to afford, over shipped in dairy products. Plain and simple. It was okay, but nothing worth living off of. It didn't work the first time, so why trying to keep it going, was beyond me. Prices we waaaay to high. Sorry to see good people to lose jobs, especially at this time of year.
110168685so said on Friday, Dec 28 at 7:49 PM
Alaska grown cost a lot more than shipping it in. They need to stay competitive with the economy the way it is to stay in business. Would be nice to always buy Alaska grown, but whatever.
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