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North Country farmers' co-op loses 2020 contract with Kraft, left scurrying to find new buyer

Published on December 30, 2019

Cow

A North Country farmers’ cooperative is in a big scurry to find their next milk buyer as they have lost a contract to ship milk to Kraft Heinz in 2020.

In the latest reports from the Watertown Daily Times, Kraft officials told the Jefferson County Bulk Milk Cooperative that they rejected a deal on December 2 that would have bought the group’s milk for the Lowville plant for another year.

According to Lynn A. Murray, who is the co-owner of Murcrest Farm in Copenhagen and a member of the co-op, Kraft provided no further explanation. He reportedly was involved with negotiations. However, after contacting several law firms for additional assistance, Murray claims one of them said that Kraft had cut back on their overall milk intake for the Lowville plant. This is reportedly due to miscalculated sales figures.

According further to Murray, Kraft Heinz was supposed to give them an answer on the deal back in September, but continued delays left the co-op little opportunity to find another buyer to obtain most of their milk.

The year-long contract is due to end Tuesday, December 31.

Murray further explained how most potential buyers would have already selected their suppliers by now. The co-op has reportedly hired a broker to anchor a contract with another buyer, but officials say a final offer has yet to be struck.

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