Changing of the guard at Mat-Maid

PALMER -- In accordance with an agreement reached some years ago, when Alaska's Board of Agriculture and Conservation was created to take control of assets under the U.S. Department of Agriculture's Revolving Loan Fund, the BAC has recently started making its presence on the Mat-Maid Creamery Corporation's Board of Directors felt.

On April 29, the BAC voted to remove two Mat-Maid board members and replace them with members of their own board. On Monday, three additional Mat-Maid members resigned their positions and were replaced by BAC members. The BAC already has authority over Mat-Maid, McKinley Meats, and several other agriculture and game-processing facilities.

"The BAC is ultimately responsible for Mat-Maid," said Don Brainard, chair of the BAC. Brainard said the BAC has administered Mat-Maid for roughly five years, since a law created the board and gave it that authority.

"This is not a sweeping change; this is not a 180-degree turn," said Ron Long for the BAC. Long described the replacement of the Mat-Maid members as "one of a series of small steps."

At the April 29 meeting, Pete Alexion and Brainard were elected to fill the newly vacated spots. On Monday, Rhonda Boyles, Ron Long and Allan Baldwin were also elected to fill three vacancies opened by resignations.

John Torgerson, manager and acting director of the Alaska Division of Agriculture, said he received a letter from Alaska Department of Natural Resources Commissioner Tom Irwin, ordering the combination of the BAC and Creamery Corporation boards. The current action being taken by the BAC is the realization of plans set out in that letter. By replacing the Creamery board with its own representatives, the BAC brings Mat-Maid's assets, which it already controls, under its jurisdiction.

Torgerson denied that Mat-Maid is in any financial or political trouble.

"They've been in the same financial get-go for a while; they're not subsidized; they make a little money," he said. However, Torgerson added that Mat-Maid had not paid off any of the loans it has accrued in recent years.

Neither did it seem that the blame for this change rests upon the former Creamery board members.

"There's no question that this has been a great public service," said Alexion, on the performance of Paul Hubert, one of the two deposed Mat-Maid board members. "This has nothing to do with productivity; sometimes we just need to spur the horse and get it moving."

Brainard emphasized that these decisions had nothing to do with poor leadership.

"This should not be construed by anybody as poor judgment on [the Creamery board members'] part," he said. "Anyone in Alaska who has watched Mat-Maid progress from its financial status in the '80s doesn't doubt that."

Brainard did, however, reinforce Torgerson's claim that the Creamery corporation hadn't paid off its loans or other losses over the last few years.

Brainard also said the BAC had had some communication problems with the Mat-Maid Creamery Board.

"Some information wasn't getting through," Brainard said.

Those in charge said they believe this is a step forward for the Valley creamery, not a step back.

"This represents a new outlook for dairy in the state," Torgerson said. He also mentioned that Sen. Ted Stevens had authorized (though not appropriated) $25 million to improve dairies in the area, money that could be used for a new Mat-Maid Creamery. The old facility is aging and uses outdated equipment, Torgerson said. He said he was hoping to bring a group of specialists from Utah State University up to the Valley in the near future to develop a business plan for Mat-Maid.

Torgerson sees the changes on the board as streamlining the operations of the creamery in the future.

"When you're dealing with corporations and government, you have to speak with one voice," he said.

Torgerson and Brainard agreed that these changes are not intended to break Mat-Maid.

"Mat-Maid is not in danger of collapsing, but they will change some directions," Brainard said. "The BAC is going to move extremely cautiously on this."

Brainard said that no fewer than six local dairies sell milk to Mat-Maid, and harm to the larger corporation would damage the smaller dairies in turn.

Another meeting of the BAC on April 30, however, contained a declaration of disaster for Mat-Maid, which used to import livestock from Canada but is now prevented from acquiring these animals due to the Canadian border closure after BSE (more commonly known as mad cow disease) scares. Mat-Maid can no longer acquire heifers from Canada to bolster its dairies, and is feeling the squeeze as far as animal replacement is concerned, according to Brainard.

Contact Daniel Spoth at daniel.spoth@frontiersman.com.