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Southeast Milk to Close Atlanta Facility |
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Monday, 19 May 2008 |
Florida-based dairy cooperative Southeast Milk Inc. (SMI) announced that it will close its Atlanta Dairy facility.
SMI's decision to close the facility was announced to employees on March 10. "Many of our employees have been with Atlanta Dairy for 20 years or more," says Calvin Covington, chief executive officer for SMI. "The company is committed to doing everything it can to assist displaced workers in finding employment."
SMI is a full-service cooperative operating for the benefit of its 300 dairy farm families located in the southeastern United States. SMI markets almost 3 billion pounds of milk annually or 150 tanker loads every day, the company reports.
According to Covington, SMI anticipated operating the facility through May 9, 2008, but a recent tornado in the Atlanta area forced them to accelerate plans to close the facility.
SMI continued to maintain dairy deliveries and operate from its Atlanta facility through early April and worked with Mayfield Dairy, LLC, a wholly-owned subsidiary of Dean Foods Co., to assist in customer transitions. Mayfield Dairy will assume the distribution routes and hire a number of Atlanta Dairy employees. Additionally, Mayfield Dairy will acquire certain assets necessary to provide continued service to Atlanta Dairy customers, including the Atlanta Dairy trademarks. Dean also has agreed to continue to purchase the raw milk produced by SMI members that was going to Atlanta Dairy.
SMI has been exploring a sale of the real estate associated with the facility to buyers interested in the property for retail or residential development.
"Closing the plant was not an easy decision for our dairy farmer owners of this plant to make," says Covington. "Since Southeast Milk became the majority owner and manager of Atlanta Dairy, the cooperative has invested several million dollars to keep the plant in operation."
Covington continued, "SMI hoped the financial performance of this plant would improve and that losses would ultimately turn to profits. Unfortunately, that did not happen and the owners are not in a position to continue funding the operation due to significant losses."
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