21 Northern California dairy producers seeking a new buyer for their milk after their contract was terminated by Crystal Cream & Butter Company may have relief in sight. Crystal has been a major employer in Amador County and was one of the first major dairy distributors here. A short- term deal has been proposed with Hilmar Cheese Company of Ripon for the purchase of milk from farmers whose contracts with Crystal Cream and Butter Company will be terminated on June 30, following the sale of Crystal last year in Sacramento. The Crystal brand was initially purchased last May by HP Hood LLC, a dairy company based in Massachusetts. Then in October, HP Hood turned around and sold Crystal to Foster Farms Dairy of Modesto. In December, Crystal’s milk suppliers were notified that their contracts would terminate this June.

The deal with Hilmar Cheese Company, the world’s largest single-site cheese and whey products manufacturing operation, would offer a short term fix for the dairy producers, many of whom have been providing milk to Crystal for over 40 years. The deal would begin July 1st and would last 6 months until December 31st, and offers a temporary answer for the producers, who have been anxiously seeking a solution to the situation.  "I applaud Hilmar Cheese's ownership for making room for these folks who were in a very difficult situation," said Western United Dairymen Chief Executive Officer Michael Marsh. Milk and Cream is California’s top commodity, and 2007 was a record year for the industry with total revenue of $7.33 billion, according to the California Department of Food and Agriculture. Many view the major problem facing California’s dairy industry to be the lack of processing facilities within the state. Much of California’s unprocessed Milk is sent out of state, a costly endeavor for smaller companies who face a lack of processing capacity and a simultaneous surge in feed costs.