Yogurt maker gets $1.3M loan from Vt.

When Commonwealth Dairy went looking for a place to open a new yogurt factory, it identified several states where it might like to locate.

[hisbigness]

$1.3 million loan?? Oh boy, let the scams begin.

[Helen]

Stonyfield announces it is going to Wisconsin for its milk supply. Why isn't the ag department trying to develop a supply of organic milk for them that is produced in VT? Instead of putting out press releases and spending their time finding ways to give taxpayer $$$$ to another yogurt company producing milk from 1,000 cow farms.

[Vermont transplant]

I didn't read the story and don't even care to. The headline says enough to make me wonder what the hell are they thinking.

[The Brattleboro Informer]

"Recently, Commonwealth teamed up with Ehrmann USA Holding, a division of Ehrmann AG, Germany, a family-run dairy processing company with manufacturing operations throughout Europe and Russia."

Why does this operation need all this taxpayer money? If the plant ever gets up and running, it won't be long before they will be looking else where to cheaper raw materials.

[flat lander]

THE SHAKE DOWN IS ON THEY NEED THE [ VT] BRAND more than we or state can afford that. 1.3 can feed a lot of citizens that can't work at least there for the few years till they get hammered like any other business that left the state. Just a couple dozen sharks feeding on the VT bait.

[New Clear Waste]

You make me laugh! First you government-haters and random whiners complain that Vermont doesn't foster business and jobs. Then when it does, you whine about that! Make up your mind, will you?

(Or perhaps I shouldn't assume that you have one.)

[flat lander]

N C W I would look for it if you give me a clue where to look. should I start in the garage or under the bed.

[hisbigness]

New Clear Waste wrote:

You make me laugh! First you government-haters and random whiners complain that Vermont doesn't foster business and jobs. Then when it does, you whine about that! Make up your mind, will you?
(Or perhaps I shouldn't assume that you have one.)

I believe the objection isn't about "new business", it is about $1.3 million of taxpayer dollars needed to entice any business to come here. If it was such a great place they wouldn't need the subsidy. I'll withold judgment until I see if it actually happens and if this isn't another scam.

[Joe]

Does the word ((( loan ))) still mean what it used to ? I know in housing it doesn't mean having to pay back the loan, but it's likely the state is a first creditor so even if the place goes broke they will still collect all or most of the money they loaned to the company. Most loans involve paying interest, so the state is likely to be using it's good credit to offer the company a low interest loan and it might not cost the taxpayers a cent.

The catch is what will each vermont gallon of milk sent to the place cost vermont taxpayers when the farmer welfare costs are factored in ?

[Vermont transplant]

New Clear Waste wrote:

You make me laugh! First you government-haters and random whiners complain that Vermont doesn't foster business and jobs. Then when it does, you whine about that! Make up your mind, will you?
(Or perhaps I shouldn't assume that you have one.)

Don't you find that an excessive endorsement. How many people will actually benefit from this yogurt factory. It probably wouldn't get such a bashing if the outcome would help encourage growth and I just don't see it and either do alot of others obviously. As a taxpayer I have paid for my right to whine.

[conan]

The Russian subsidiary of German dairy producer Ehrmann posted net profit of 42.5 billion rubles in 2008. 2008. compared to net losses of 404 billion rubles in 2007. According to the SPARK database, Ehrmann's Russian division boosted sales revenue to 5.2 billion rubles last year from 4.8 billion rubles in 2007.

i'm not exactly sure how to convert the dollar to the ruble - but something tells me this company has a lot of money.
to come in to little old vermont and to get the state to pony up a total of 2 million dollars in loans = highway robbery.

[New Clear Waste]

conan wrote:

to come in to little old vermont and to get the state to pony up a total of 2 million dollars in loans = highway robbery.

Your statement appears to contradict itself - are you not sure about the definition of "loan"? And why bend over backwards trying to find arguments against encouraging new businesses moving in? Is it perhaps because it undercuts your argument that Vermont is anti-business? Your argument just seems weird & contradictory.

[hisbigness]

Joe wrote:

Does the word ((( loan ))) still mean what it used to ? I know in housing it doesn't mean having to pay back the loan, but it's likely the state is a first creditor so even if the place goes broke they will still collect all or most of the money they loaned to the company. Most loans involve paying interest, so the state is likely to be using it's good credit to offer the company a low interest loan and it might not cost the taxpayers a cent.
The catch is what will each vermont gallon of milk sent to the place cost vermont taxpayers when the farmer welfare costs are factored in ?

First, no one has said the state is the "first creditor". If there is a building and a bank loaned the money then the bank would have first mortgage not the state. If a lot of the money goes to things like salaries and other soft costs, there is no way to collateralize that and if there is a lot of graft then the state will not get the money back. Lots of lenders don't get all the money back after foreclosure.

[The Brattleboro Informer]

Will Ehrmann USA Holding make good on the loan is Commonwealth takes the money and runs?