Blunder Ruins 23 Million Lbs. of Butter

BOISE (CN) - Dairygold, the giant farm co-op, says it had to recall 23.4 million lbs. of butter after an equipment remanufacturer sold it cheap rotors that broke and contaminated the butter with plastic shards. The four rotors cost $2,000 in a $700,000 overhaul that led to the butter blunder, Dairygold says.

Dairygold, one of the largest farm cooperatives in the United States, says it had to recall the entire batch of butter it had sold to Japan.

It sued Dairy Solutions International; APV Denmark, successor to SPX Corp., and Danlac, of Wisconsin.

Dairygold claims the defendants charged it nearly $700,000 to remanufacture a Pasilac Buttermaker. The costs included $2,056.34 for four plastic rotors for the butter pump.

Dairygold says the rotors were the source of the plastic shards that forced the recall.

The recall forced Dairygold to melt down and screen the butter, Dairygold says. It estimates its damages in business interruption, reputation as no less than $7.8 million. It seeks at least that much, for negligence, breach of contract and breach of warranty.

Dairygold is represented in Ada County Court by David Knotts with Carey Perkins.

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