Hastings Creamery closes, leaving some dairy farmers without a place to process milk
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Updated: 2:15 p.m.
A dairy creamery in Hastings, Minn., that’s operated for more than a century has closed.
Hastings Creamery was founded in 1913 as a butter manufacturer and began bottling milk in 1920. According to its website, it’s owned by a group of local farmers focused on sustainable farming methods. The creamery also operated a dairy store in Hastings.
A person who answered the phone at the creamery on Tuesday confirmed that it’s closed, but did not disclose why.
In June, the Metropolitan Council cut off sewer service to the creamery after it leaked thousands of gallons of milk and cream into the city of Hastings’ sewer system, resulting in several permit violations.
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In a statement, the Met Council said it spent several months working with the creamery, the city of Hastings and the state departments of labor and industry and agriculture to find a solution that supports local milk producers while protecting the community’s water supply.
“The Hastings Creamery is an important asset to the region, and we are committed to partnering on any future resolutions that supports the Creamery and the safety of the Hastings community,” the statement read.
Thom Petersen, commissioner of the Minnesota Department of Agriculture, called the news “disappointing, but not totally unexpected.” He said the aging creamery faced a number of challenges, including the wastewater problems and a tough dairy market.
“It kind of led to the perfect storm for this plant, and a lot of hurdles to overcome,” Petersen said. “We’ve worked really hard the last few months to try to help them get through and try to find solutions. But at a certain point, money and dollars become an issue.”
Lucas Sjostrom, executive director of the Minnesota Milk Producers Association, said the Hastings Creamery bought milk from about 45 producers, mostly in Wisconsin and some in Minnesota.
“That’s going to be the immediate and huge impact,” he said. “Most of us who are dairy farmers can’t imagine waking up and discovering we don’t have a place to ship our milk.”
The farms served by Hastings Creamery represent a tiny fraction of Minnesota’s 1,800 dairy farms, but for them, it’s “extremely devastating,” Sjostrom said.
Market factors also are making the situation more challenging. Overall, the dairy industry is struggling with low prices due to oversupply and decreased demand.
In the past, if a processor shut down, a dairy farm could simply find a new one. But for the last year or so, that’s been nearly impossible due to a shortage of processing capacity, Sjostrom said.
“Our best hope is that this plant gets bought quickly or sold quickly and is up and running fast,” he said.
Petersen said there’s a lot of community support for the plant, which has provided jobs for decades. He said he’s heard from several people interested in trying to restart the plant and from state legislators willing to help.
“We are just hoping and stand ready to try to see what we can do,” Petersen said.