Another tragic chapter in the protracted decline of Hawaii’s dairy sector is being written with the bankruptcy reorganisation of the state’s only commercial dairy.
However, legislators have assured the public that they are working on a solution to save Hawaii’s Cloverleaf Dairy.
“This is the sole dairy in the state,” Senator Inouye, who represents Hilo, said. I’m helping them out, and I want Cloverleaf to be successful.
Recent bankruptcy court filings reveal that local billionaire Bahman Sadeghi now owns 85.7% of the stock of Boteihlo Enterprises Inc., Cloverleaf’s parent firm.
Sadeghi is also the owner of Meadow Gold Dairy in Hawaii.
According to Inouye, the dairy can be saved by Sadeghi’s acquisition.
She claimed that the majority of people in the area and the state were in favour of Meadow Gold.
The Big Island dairy will be able to recover from bankruptcy, upgrade to newer machinery, and grow under the new ownership.
According to Inouye, Sadeghi owns land in the area with access to water for Cloverleaf’s parched herd.
Cloverleaf, which lost $94,000 in 2016, reported that it had to relocate 200 of its cows, or almost half of its herd, to graze on a neighbouring property due to the recent drought.
However, Dutch Hawaiian Dairy Farms, a nearby ranch, has allegedly refused to return the cows owing to a disagreement over grazing fees, as claimed by the firm.
That, according to company president Ed Boteihlo, is what led to most of the losses and ultimately the bankruptcy case.
A big number of cattle were placed on Dutch Hawaiian Dairy Farms LLC’s property in 2020 during a drought season, and the company has refused to take them back, according to Boteihlo.
Due to probable legal action, Dutch Hawaiian declined to comment on the matter. It has stated that it intends to continue seeking a separate agreement to buy Cloverleaf.
Bankruptcy courts must approve any sales.