Meadow Gold Dairies slated to lay off Kaua‘i-based employees in January

Meadow Gold Dairies plans to lay off employees in distribution and warehousing statewide on Jan. 15, according to Jon Bryan, president of JB Brands and spokesperson for Meadow Gold.

The layoffs are unrelated to the allegations made by a national nonprofit that the state’s sole dairy company discharges milk and manure into the Pacific Ocean, Bryan said.

On Nov. 15, the company filed a notice with the Hawai‘i State Department of Labor and Industrial Relations stating it is discontinuing all of its warehousing and distribution operations due to a new partnership with Hawaiʻi Foodservice Alliance.

The management of warehousing and distribution for retail, schools and frozen products will be handled by Hawaiʻi Foodservice Alliance, and Pacific Provisions Hawai‘i will manage the distribution of food service accounts. 

Layoffs will occur statewide, including warehouses on the Big Island and Kaua‘i. According to the notice, 24 positions at a warehouse in Hilo – located on Railroad Avenue and Pauahi Street – will be permanently terminated.

Seven positions will be eliminated from its warehouse on Kaua‘i.

Positions that are being laid off include commercial drivers, branch managers, transportation supervisor, milk receiver, merchandisers, warehouse associate and customer service representative.

According to a statement from Meadow Gold, all affected employees will remain in their current roles as the company moves through the process.

“Despite our dedicated efforts, meeting our distribution and service standards has been a constant challenge,” Meadow Gold stated in a release. “After careful consideration, we decided to transition away from managing our own warehousing and distribution operations to focus on expanding local production and investing in value-added local manufacturing to align with our vision to support Hawaiʻi’s dairy industry.”

The dairy will continue to maintain and operate the production facility in Hilo as well as invest and complete the manufacturing facility in Kapolei on O‘ahu.

“While this is a significant transition, we believe it is necessary to strengthen our long-term ability to deliver high-quality products and to uphold the standards Hawai‘i deserves while moving us closer, as an island-state, toward greater sustainability and increasing the ability to keep producing locally made products,” Meadow Gold said in a statement.

The company also said it was committed to supporting affected employees throughout this period.

The downsizing comes three months after the law offices of Charles Tebbutt, representing the Center for Food Safety, sent a letter saying it intends to initiate a citizen’s suit in Hawaiʻi Federal District Court against Cloverleaf Dairy in Hawī, which is owned by Boteilho Hawai‘i Enterprises.

The letter accuses the dairy company of unlawful dumping at the farm, which is polluting streams, groundwater and ocean waters in violation of the Clean Water Act and Resource Conservation and Recovery Act.