Island Dairies Re-Opening?

SEDI Press Release:

The Virgin Islands Agriculture Development Corporation (ADC), is please to announced its intent to acquire the assets of St. Croix Dairy Products, Inc (d/b/a Island Dairies)

St. Croix Economic Development Initiative (SEDI), new non-profit organization Virgin Islands Agriculture Development Corporation (ADC), has made an offer to purchase Islands Dairies and restart the operating plant in Sion Farm. SEDI will be holding a press conference Tuesday, February 25, 2014 at 5:00 pm on the Island Dairies plant located at 4G Sion Farm, Christiansted St. Croix VI 00820.

On September 19, 2013 the Virgin Islands Agriculture Development Corporation (ADC) Legal Counsel Scot McChain and Acting President, sent a formal Letter of Intent (LOI), to the owners of both St. Croix and St. Thomas Dairies companies to purchase and consolidate both companies.

St. Croix Dairy Product, Inc was forced to shutdown its Island Dairies operations after 52 years back in December 15, 2011 , where 25 jobs were lost. St. Croix Dairy Product employed 41 full time employees at the pinnacle of the plant operations. In addition to job losses the Virgin Islands community lost an icon local consumer food brand "Island Dairies", which included milk products, ice creams and juices.

Island Dairies had cited high operating costs and utility bills, fuel and raw materials and decline in sales after 52 years of doing business in the Virgin Islands. It is SEDI's position ALL businesses throughout the USVI are confronted with these impediments and are experiencing hardship to stay in business. These dynamics must be address and change to ensure local businesses have a chance to succeed in these challenging economic times.

The current economic formula and dynamic has to change, a new paradigm. We must start producing, originating or be the aggregate supplier of a commodity or commodities to have a viable and robust economy that is globally competitive, but most important feasible locally. For the USVI to recover economically, and achieve economic growth it has to increase the amount of the goods and services produced in its economy over time.

Due to local economy of scale (a tiny island marketplace), it is has been proven to be very difficult or cost prohibitive to sustain a viable business in a global economy. For this reason we must look beyond our shores for greater market opportunities for growth and expansion to export local products. The Virgin Puree local natural fruits frozen preservation project will offer this opportunity to combine the two brands of Island Dairies products and Virgin Puree product line for export to larger markets in the Caribbean and the US. The Island Dairy physical plant and existing infrastructure lends to the Virgin Puree model.

We anticipate with some physical plant improvements, incorporating renewable and efficient energy equipments, local market consolidation, the formula to right size the Island Dairies business model, and a cooperative consumer member ownership base (like such food products of Welch's, Sunkist and Land O Lakes just to name a few), will mitigate the kind of operating problems Island Dairies had encountered in the past. Consequently, a new and more leaner Island Dairies business model can emerge to do business and compete in the 21st Century.

Please contact Mr. Anthony Weeks at (914) 574-1213 for further details about this press release and upcoming press conference.