SMOKY LAKE, Alta. – Residents of this northern Alberta community hope to raise $1 million in the next week to try and save the town’s dairy.
People living in the town and county around Smoky Lake are trying to keep Horizon Dairy in their community after it went into receivership around Christmas time.
Horizon Dairy, owned by the Holgerson family, was the town’s largest private employer. About 45 people worked at the dairy in the town of more than 1,000 residents.
Carole Carpenter, mayor of Smoky Lake, is worried if they don’t find a buyer for the dairy, it will be sold bit by bit and the town will be left with an empty building.
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“We hope to keep most of the equipment intact,” said Carpenter.
$1 million needed
A feasibility study released last week said the dairy has been profitable in the past and has potential to be profitable, but about $1 million is needed for operating and to buy the assets.
The company filed for bankruptcy Dec. 29 and owes $2.6 million, with assets of $976,000.
Gerald Holgerson, former president of the dairy, said he supports what the community is trying to do, but doubts if a small dairy will be able to compete unless some rules are changed.
“I don’t want to be negative, but there definitely has to be a change in the system before anything would be successful,” said Holgerson from his farm in Warspite.
He said smaller dairies need to have access to the same amount of shelf space in supermarkets as large dairies and be able to buy less expensive different classes of milk.
He said if a community group got together maybe it would have more political clout than he did.
The town and county don’t want to own the local dairy, said Carpenter, but are hoping to help organize a group of local or outside investors to see the potential of the dairy.
The town has until Feb. 9 before the receiver can begin liquidating the dairy’s assets.
