The Rural Voice, 1999-07, Page 20STARTING OVER
In 1908 the local communit y started the
Millbank cheese factory. Now, with the
plant closed by a multi -national giant, the
community is trying to start a new cheese
factory in the same area.
By Bob Reid
VOW
Asmall group of Milverton area
residents has been working
since January to re-establish
the historic significance of cheese
making in the community while at
the same time hoping history won't
repeat itself.
A nine -member committee of
local farmers, business owners and
entrepreneurs has met almost weekly
in preparation for launching a small
cheese plant, following the closing in
early January of the Millbank cheese
plant by its owner, multi -national
food giant Parmalat. The Millbank
operation was known across Canada
for its high quality cheddar. However
the high quality, low volume product
supplied by the plant did not fit in
with the high volume markets
pursued by Parmalat, resulting in the
decision to close.
"Something about that rubbed me
the wrong way," said John Roe, chair
of the committee now pursuing the
goal of establishing a new plant
under the title of Perth East
Community Project.
The Milverton -area business
consultant added that he had many
friends who worked at the Millbank
plant and that he was aware of the
16 THE RURAL VOICE
"nuances of the closing."
Millbank Cheese was established
in that hamlet in 1908 as a co-
operative by nearby surrounding
farmers who then shipped milk to the
plant. It operated as an independent
until the '80s when it was bought out
by J. M. Schneider of Kitchener. It
was later sold to Ault Foods before
finally being acquired by Parmalat,
the Italian -based conglomerate.
Offers have already been made by
the committee to purchase the
Millbank cheese property but
Parmalat has refused to sell.
Consequently a different direction of
establishing the new cheese business
at another site, at an estimated cost of
$2 million, is being pursued.
With the assistance of money
received from the federal and
provincial governments, a London
business consultant was hired by the
committee. A feasibility study and
strategic plan were completed. A
business plan is expected to be
finalized within days but time has
become an important factor
determining whether the business
will ever get off the ground.
An opportunity to purchase milk
quota the business needs to operate
has presented itself but arrangements
for the $500,000 -purchase had to be
in place by the end of June. An
appeal has gone out to the
community to determine if area
residents are supportive enough of
the project to invest in the business.
Two public meetings were held at
the Perth East Township hall in
Milverton, June 8 and 10, with 50
people attending each meeting. They
were given a presentation on the
work accomplished to date by the
committee as well as the opportunity
of raising the 40 per cent equity
capital (of the $2 million) needed for
the project to proceed.
A third meeting was then held at
the Perth East Township hall for
those who indicated a willingness to
invest in the venture. Roe was
encouraged by the show of verbal
support from the community but
needed to determine how that would
translate to financial support.
"Cheese making was one of the
greatest traditions in this
community," said Roe while he
addressed those gathered for the June
10 public meeting.
He stated that the new cheese
business hopes to produce the same
type of high quality cheese as the
former Millbank plant. It will be