Cash flow problems derail MOOMilk
A shortage of funding has led MOOMilk, a company that sells organic milk from six Maine dairy farmers, to suspend production as of Sunday.
The company, which formed last year after HP Hood opted not to renew its contracts with 10 Maine organic dairy farmers, cited a number of reasons for the funding dearth, including the economy, the high price of organic milk compared to conventional milk and dwindling production, according to the Bangor Daily News. Since it began selling milk in January, two farmers have retired, one sold his herd and a fourth switched to conventional milk. "We've just not been able to produce or sell enough to make a profit," David Bright, MOOMilk secretary and co-founder, told the paper. He said the company is not making enough money to pay its overhead, and that it owes money to its hauler, distributor Oakhurst Dairy and processor Smiling Hill Farm.
Bright said the company is in talks with the Maine Department of Agriculture, the Finance Authority of Maine and other state officials to find a new funding source, including private investment.
Go to the article from the Bangor Daily News >>
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