Swiss Valley Will Not Come Back After Flood

Davenport-based Swiss Valley Farms has announced that it will not reopen its Cedar Rapids Dairy Processing Plant at 133 F Ave. NW. The plant was inundated by floodwaters on June 13. The plant employed about 60. Photographed Friday, Oct. 31, 2008, in northwest Cedar Rapids. (Jim Slosiarek/The Gazette)

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By Becky Ogann

Story Created: Oct 31, 2008 at 12:38 PM CST

Story Updated: Oct 31, 2008 at 3:59 PM CST

CEDAR RAPIDS - Swiss Valley Farms said on Friday that they do not plan to reopen their downtown Cedar Rapids plant, which employed 45.

The company says that the struggling economy and the city of Cedar Rapids’ potential flood zone designation of the property have made it impossible to reopen their downtown plant.

CEO Don Boelens said that much of the plant's machinery was overcome by the flood, including electronics, pasteurizing equipment and robotics.

“We worked with the Iowa Department of Agriculture, Senators Grassley and Harkin and Priority One toward a successful outcome for our loyal consumers, quality employees and the communities in which we serve. Nationwide economic uncertainties we are all facing combined with the City’s potential designation of the plant’s property as ‘flood zone,’ have brought us to the conclusion that our Cedar Rapids plant will not be reopened,” said Boelens.

Swiss Valley also says that sales are up nearly 12% from just a year ago from $490 million to $550 million. Boelens said that the company has found new markets for their co-op members’ milk.

Swiss Valley Farms, Co., is a four-state cooperative owned and controlled by 1,000 dairy producers, with headquarters in Davenport, Iowa.

Swiss Valley Farms operates a milk bottling plant in Dubuque, Iowa. The company has cheese manufacturing plants in Luana, Iowa, Mindoro and Platteville, Wisconsin and a cheese packaging plant in St. Olaf, Iowa. Swiss Valley Farms operates a wholly-owned subsidiary, Rochester Cheese, with plants located in Dalbo, Rochester and Spring Valley, Minnesota. Swiss Valley Farms has 560 employees and annual sales of $550 million.

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