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Milk Cooperative To Rebuild Butter Plant

NEW ULM, MN-The Associated Milk Producers Inc. plant was destroyed by fire last month. Insurance will cover much of the costs, but the cooperative is looking for government assistance as well.

By Jim McCartney | Updated on January 18, 2005

NEW ULM, MN-Associated Milk Producers Inc. plans to rebuild its butter processing and packaging plant that was severely damaged in a Dec. 1 fire, and will restore most of the 130 jobs it had at the southern Minnesota plant. “Though AMPI personnel continue to evaluate the plant and equipment damaged by the fire, early assessments indicate reconstruction is feasible,” says Mark Furth, AMPI’s general manager.

“This may be an opportunity to improve our farmer-owned business,” he adds. The dairy cooperative will explore tax breaks and other financial assistance from local, state or federal governments to rebuild the plant. Insurance will cover most of the structural and equipment damage and the loss of three million pounds of butter that was at the plant at the time of the fire. Even with that coverage, Furth says some changes in a rebuilt plant are necessary to account for new building code requirements and technology changes.

AMPI says construction could begin in the spring. Some of the butter-processing and packaging equipment that wasn’t destroyed by fire has been moved to an undamaged area of the plant and a limited amount of production has resumed, the dairy co-op says.

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