In a move that punctuates the ending of one of Oregon’s long-standing dairy operations, Portland-born Alpenrose Dairy confirmed it will be closing its Clackamas facility, ending its dairy production presence in the state and consolidating its operations to Washington state. The closure, which will halt the plant's butter and sour cream production, is set for March 31, effectively laying off 35 employees. A statement by the company clarified that individuals affected will be provided with severance packages and support during the transition, as reported by KOIN.
The shuttering of the Alpenrose plant follows what CEO Dusty Highland called "worsening butter market economics and a shift in the competitive landscape," that hurt the facility's financial performance, according to a statement obtained by OregonLive, and the economics of operating such a facility have apparently become untenable, with the company facing economic challenges after attempting to expand its dairy products portfolio through the purchase of Larsen's Creamery in Clackamas previously, as per KGW.
Nate Donnay, a dairy market economist with StoneX, underscored the significant drop in butter prices contributing to financial strain for smaller producers like Alpenrose, where prices fell from about $2.53 a pound in July of the previous year to $1.35 a pound this month. This change further exacerbated the difficulty for small-scale operations to remain competitive, as noted in KGW’s coverage.
This operational shift marks a significant change from the dairy’s 2022 expansion plans and its century-long history in Portland. The Alpenrose brand will now operate solely from a facility in Kent, Washington, even as products like milk and cottage cheese remain on grocery store shelves across the Pacific Northwest. Meanwhile, the former Portland property has already been redeveloped into a housing subdivision, signaling the end of an era for the Swiss-founded brand in Oregon, as mentioned by KOIN.
