Houlton Farms Dairy, the only dairy producer north of Portland, will halt milk production by the end of the month.
Plant manager Eric Lincoln said the decision was driven by a decline in sales of milk, and the closure of the dairy farm that supplies raw milk to the company.
“It’s a tough decision, very tough,” he said. “Financially, it’s the only thing we can do. We’re losing money. We own everything we have, and we’re not going to go borrow money to try to keep going, that we know we can never pay back.”
Houlton Farms Dairy supplies milk to around 100 stores, Lincoln said. The company will continue to make other products, including ice cream, butter and chocolate milk.
“It’s not a move that we like,” Lincoln said. “We don’t really want to give it up. But raw milk supply — you don’t have the milk. You can’t supply the stores, and if you’re losing money, then it doesn’t make much sense, either.”
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