,f Ain* 'qy
/e’re doing ia
ie hat we’re handlL
to i and moving it som.
»- te said,
ot nni, the hugest milk i
y on the East Coast, also ope
o Tiiscan Dairies plants in
i, NJ., and Jamaica, N.Y.,
hree Lehigh Valley Dairies ±
5 ts in Pennsylvania and Green ha
, mg Dairy in Baltimore. Flen.
t iuever said hauling charges OH.
tentially could change for some Cooper,
oducers whose milk supply is reportedly
lifted to another plant, but the raw milk to.
ame haulers and fieldmen will ed equanimity
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Johanna Plant May Close, Industry Unruffled Wn*B
KARL BERGER producer!. continue to serve these dairymen.' fog *
Special Correspondent “All we’re doing is taking the Although Johanna has contracts “Wedon’t see any major disnip-
FREDERICK, Md. The product that we’re handling at Fie- with dozens of independent dairy- dons at this point because that
decision of Johanna Farms Inc., to mfogton and moving it somewhere men, particularly in northern New supply is soinsto be shared with
try to phase out fluid milk process- else,” he said. Jersey, roost of the milk produced other nfant fites,” said Atlantic
ing at its Flcmington, NJ., plant Johanna, the largest milk pro- by these farmers already goes to «nrJr»«™ fl n t in) England
should have little impact on dairy ccssor on the East Coast, also oper- the Tuscan plant in Union, accord
farmers’ milk checks, according to ates Tuscan Dairies plants in fog to industry sources. Soever . Johanna announced June 1 that
officials forthecompanyandother Union, NJ., and Jamaica, N.Y., said only a handful of independent il 118(1 OP®"® l discussions with a
industry spokesmen. the three Lehigh Valley Dairies producers fiom New Jersey still iocal Teamsters unit on a proposal
Mike Suever, Johanna’s vice plants in Pennsylvania and Green have their milk shipped to h> end milk processing at the plant,
president for milk procurement. Spring Dairy in Baltimore. Flcmington. The local represents a majority of
said the change will not affect Suever said hauling charges Officials fra Atlantic Dairy *c 200 or so workers there. Com-
Johanna’s fundamental relation- potentially could change fra some Cooperative, whose members P 3o *' officials said many of the
ships with its raw milk suppliers, producers whose milk supply is reportedly supply the bulk of the affcctcd employees will be offered
which include both cooperatives shifted to another plant, but the raw milk to the plant, also express- P° Sltlons 8t othcr locations or
and a number of independent same haulers and fieWmen will cd equanimity about the forthcom- Wlthin othcr divisrons of the
company.
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Under the proposal, the plant’s
other current operations, including
the making of yogurt and the pro
cessing of juice, would continue,
Suever said. Johanna’s headquar
ters also would remain at the Fie
mington site.
The proposed move reflects
continued consolidation and com
petitive pressures within the
industry.
In a prepared statement, John
Anderson, the firm’s chief execu
tive officer, said, “Declining con
sumption of fluid milk products
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fcouplccf with population shifts out
of our New Jersey and New York
markets have led to excess produc
tion capacity... After months of
analysis, we concluded that we
must close a plant
t' • *
“Hemington was a prime candi
date because of its poor proximity
to our two largest markets, metro
politan New York and metropoli
tan Philadelphia, and its increas
ingly poor proximity to raw milk
supply.”
Industry observers concur with
the company’s analysis.
Bob Yonkers, an ag economist
at Penn State University, said, “It
used to be all the bottling plants
were located in the city and now
they’re moving farther away to be
closer to the milk supply.” These
changes also reflect population
shifts from city centers to outlying
areas, he added.
Yonkers, too, agreed the move
would have little, if any, impact on
overall producer returns within the
Mid-Atlantic region. Fluid milk
processing capacity will be less, he
said, “But we’re not using the
Class I capacity that we have
now.”