US-based Matanuska Creamery is set to halt operations at its milk production plant in Alaska by the end of this month, after a five-year long struggle to continue operations at the facility.The decision was taken earlier this month, following a recall of $850,000 worth loans by the state Board of Agriculture and Conservation, reported the frontiersman.com.
Matanuska Creamery head Karen Olson was quoted by the website as saying that the plant owns $677,000 worth of equipment and an auction may not adequately recover the dairy's revenue.
The company will lay off 15 employees with the shut down of the creamery, which currently has 400 cows and calves.
Olson said that the dairy will only halt the operations and not file for Chapter 11.
