Schools scramble to find alternative milk supplies
WAUKESHA, Wis. — The closing of a Waukesha dairy processing plant has schools and grocers scrambling to find alternative milk suppliers.
The Golden Guernsey plant that supplied their milk closed over the weekend with little warning. Mapleton Dairy Haulers president Lynn Hiemke in Oconomowoc expects there will be a lot of schools without milk Monday.
The Golden Guernsey plant had been under the ownership of a Los Angeles private equity firm since last year. Open Gate Capital bought the operation from Dean Foods, which was required to sell it to satisfy antitrust concerns.
Workers tell the Milwaukee Journal Sentinel the plant employed about 100 people. State labor officials say they were not notified of the closure, which is required by law.

Jan 7, 2013 at 5:58 p.m.
Suggest removal
billnewbie said, "Socialism on the other hand, as our government is slowly implementing with its myriad regulations and army of regulators, if rife with these kinds of unanticipated consequences and the collateral damage to people they cause."
"Rife with these kinds of unanticipated consequences?" First of all, when you have vulture capitalists involved, these kinds of consequences should never be unanticipated. Secondly, please explain how these kinds of consequences at the hands of vulture capitalists would occur in a socialist economy.
Jan 7, 2013 at 4:28 p.m.
Suggest removal
We live in Wisconsin, and we can't figure out where to find some milk.
Jan 7, 2013 at 4:24 p.m.
Suggest removal
good job guys. Deans sells the plant and the boys in Chimung are making some good OT supplying milk anyway.
Jan 7, 2013 at 3:37 p.m.
Suggest removal
This is obviously a case of zealous government regulations and regulators causing yet another case of unanticipated consequences. They objected to Dean Foods having too large a share of the public school milk market in Wisconsin and the UP, forcing Dean Foods to divest itself of the Waukesha plant. I guess they were afraid that Dean Foods would try to drive up the cost of school milk in these 2 areas, as if school systems would have no other sources to choose from. After all, That's an awfully small market that they feared Dean Foods was trying to "corner" So, in trying to prevent what might happen, they've now actually caused it, since Dean Foods is no doubt going to be called on to help make up the government caused school milk shortage.
For all of Capitalism's shortcomings, at least it works. Socialism on the other hand, as our government is slowly implementing with its myriad regulations and army of regulators, if rife with these kinds of unanticipated consequences and the collateral damage to people they cause. Every time it tries to right a wrong, it creates another with misery for the very people they say they are trying to help. I can hardly contain my excitement to discover what Obamacare's unanticipated consequences and resultant miseries are going to be!
Jan 7, 2013 at 3:29 p.m.
Suggest removal
"Shame on Van Hollen & Holder" Where did that come from. Sounds like someone is pulling something out of their a$$.
Jan 7, 2013 at 2:18 p.m.
Suggest removal
@ganderso: What exactly are you implying? It seems to me that this is a case of government attorneys not thinking about real world consequences. Imagine that! They can put years in on a case & who foots the bills? Taxpayers! Who was paying Dean's legal bills? Seems as if they had to say uncle and give in or face bankruptcy. Ironcially who is everyone turning today? Dean! Shame on Van Hollen & Holder. What exactly did this accomplish? Typical government.
Jan 7, 2013 at 1:31 p.m.
Suggest removal
I am betting Dean's will be allowed to come back in and operate the plant. Makes one question the whole transaction of selling the plant to comply with anti-trust regs. Personally I smell a rat here.
Jan 7, 2013 at 1:11 p.m.
Suggest removal
Lots of conclusion jumping on this thread, I thank the few of you who are being objective.
Jan 7, 2013 at 11:10 a.m.
Suggest removal
Greedy corporate thieves. They probably raided the company's funds then closed it.
Jan 7, 2013 at 10:49 a.m.
Suggest removal
They must have been union.
Jan 7, 2013 at 10:28 a.m.
Suggest removal
Mac never assume! Have run and owned a business have had to follow rules and obey laws. I bet if these employees had know of closing they would have done many things to save thier jobs. We as a country have seemed to forget who is the government and what it is for. Like I stated earlier if you base how you pay for government on income tax and you destroy and eliminate good paying jobs you (we) are doomed to a downward trend where the haves will have to fear the have nots and that ain't good.
Jan 7, 2013 at 10 a.m.
Suggest removal
After being so exposed to how vulture capitalists work via the Romney/Bain history, why is anyone surprised by this? Mitt would be high-fiving these guys for having harvested a return on their investment. The 100 people left without jobs? Collateral damage of good old-fashioned American-style capitalism.
Jan 7, 2013 at 9:56 a.m.
Suggest removal
Justasking: by your comment I can tell you never owned a business. There always is lots employees can do to save their jobs. Bring in more revenue.
Jan 7, 2013 at 9:38 a.m.
Suggest removal
Government antitrust laws forcing Dean foods sell to a unstable business to avoid litigation was not in the best interest of the public. If there is a bad guy here, it's the government fowling things up with laws that go against common business sense.
Jan 7, 2013 at 9:30 a.m.
Suggest removal
Just & Wis;
I wasn't condoning their actions, just informing. And obviously this wouldn't have been a surprise to them.
Jan 7, 2013 at 9:20 a.m.
Suggest removal
Sorry that is a load of ****.I bet next someone will tell me they will get let off the hook for this to and no one is going to do a dam thing about it.
Jan 7, 2013 at 9:17 a.m.
Suggest removal
Milk, they just figured out they were losing money over the weekend? Or did they not know the rules? Remember no matter thier reason there are another 100 people looking for a job because of no fault of thier own.
Jan 7, 2013 at 8:58 a.m.
Suggest removal
Twerp:
1. They probably will.
2. Usually the schools have contracts with a distributor and not the dairy, so the distributors were scrambling Saturday to find a new milk supply.
And Just:
3. I believe they were losing money or they could have sold the dairy for a profit instead of shutting it down.
Jan 7, 2013 at 8:37 a.m.
Suggest removal
Ok so a Open Gate Capital a private equity firm bought Golden Guernsey last year and over the weekend they decided to close it? I guess they just did not have time to follow the rules? Just another case of money making money for some one (Open Gate Capital) and the people who actually get thier tired butts out of bed and work hard to make thier money and support thier familys getting the shaft. Just remember if your country is supported by income tax and no one has income you can tax them at a 100 % rate and it still = a big fat ZERO
Jan 7, 2013 at 8:02 a.m.
Suggest removal
Ok I have 2 questions then: 1) will the company be fined for closing without notiying the state 2) Do the schools have contracts with the company, so that they would be violating them? or how about contracts with the local farmers selling the milk to them? Seems to me if they did (violate terms of contracts etc...), and the state fines them or schools sue for breach of contract it could be a very costly move for the parent company.
*
ok a 3rd question...What would make them close so abrubtly? Would be nice to know the rest of the story behind the closure.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.