Greeley's Meadow Gold to absorb Montana plant's loss

Sharon Dunn, (Bio) sdunn@greeleytribune.com
April 26, 2008

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Greeley's Meadow Gold plant is about to shift into a higher gear.

The plant, at 450 25th St., will absorb production lost from Meadow Gold's Kalispell, Mont., plant, which will close in June. Parent company Dean Foods, based in Dallas, announced the closure earlier this week.

"We had some production take out of here years ago," said John Guerin, general manager of the Greeley Meadow Gold plant. "This is the nice side of the business to be on when you're adding production."

According to a press release, the Montana plant is being closed as a "result of excess capacity and similar product lines among the three Western regional Meadow Gold plants."

About 40 people will be out of a job, but none will be transferred to Greeley, Guerin said.

The company will help those employees find work in Montana, or transfer to other plants in the area, according to the release. The company's Great Falls, Mont., plant also will absorb some of Kalispell's loss.

Greeley's Meadow Gold plant went through its own downsizing in 2001, and Guerin said it's never easy to see employees go.

For the Greeley plant, however, the added production is welcome news. The Greeley plant will add the Montana plant's production of cottage cheese and sour cream to its own varieties that include orange juice, cottage cheese and even Dairy Queen mix.

Guerin said the additional workload -- for which he's already hired people and added equipment -- should bode well for the Greeley plant's longevity.

"In Kalispell, they were very isolated," Guerin said. "They weren't doing a lot of variety in production, so it's easier to take that plant and shift some around. What's driving the business ... is the more production you can do in one location."

Meadow Gold officials say the company is planning to pay safety and quality bonuses to people who help close the plant, and to offer severance pay and benefits.

There are plans to help the displaced employees find new jobs, including a company-hosted job fair in the coming weeks.

--Associated Press contributed to this report.