Editorial: Matanuska Maid Dairy looks good in basic black

Aug. 19, 2007

Frontiersman editorial

Matanuska Maid Dairy isn't ready to be sent out to pasture.

Two months ago, the state-owned dairy was hemorrhaging money and on the verge of closure. Gov. Sarah Palin stepped in, dismissed the entire state Board of Agriculture and Conservation and charged its all-Mat-Su Valley replacement with finding a way to save the 71-year-old company.

Today, under this new leadership, Mat Maid is running leaner and meaner and is in the black for the first time since 2005. After losing about $700,000 in about two years, the dairy actually made money in June - $62,000. It also expects to show a profit for July.

We are pleased to see how quickly and decisively the fate of Mat Maid is being turned, the difference being the dairy is getting back to being run like a business. After more than 20 years of state ownership, it seems Mat Maid had fallen into operating like a government agency rather than a viable business interest. Perhaps that's why there hasn't been much success in luring prospective buyers willing to continue the dairy's operations in Alaska.

Unless you're trying to buy influence, nobody wants to purchase a government agency. A promising business with a bright future is another animal altogether. By building on initial success, Board of Agriculture and Conservation member Kristin Cole says she's confident the state should eventually expect to get more than a few magic beans for Mat Maid.

More than saving one of the state's oldest agriculture entities, we support the state ag board's focus on protecting the future of Alaska dairy farming. We also support its renewed goal of eventually getting the state out of the dairy business.

That was the intent in 1985 when Mat Maid found itself in bankruptcy and on the verge of shutting down. Twenty-two years later we find ourselves in the same position - working Mat Maid into a viable business again.

Mat Maid isn't out of the woods yet, but at least now it seems we've found our trail of breadcrumbs. Kudos to Gov. Palin and the ag board for not allowing Matanuska Maid Dairy to die without a fight.