Dairy Closes in Small Northern Town Skip to content

Dairy Closes in Small Northern Town

The dairy processing company in Blönduós (pop. 1,000) will cease operations because of a difficult operating environment, according to Egill Sigurdsson, chairman of the board of the dairy cooperative Audhumla. Eight people will lose their jobs.

“It is a terrible situation and we will regret the loss of this company very much,” Valgardur Hilmarsson, head of the Blónduós town council, told Morgunbladid. “The dairy has been a work place for around ten people, which is a lot in our community, and the company has been one of the pillars of the local economy since 1946.”

Hilmarsson said the town council will request a meeting with the board of Audhumla to discuss the matter. “We were sorry that the board did not contact the town council when they made this decision. One cannot be satisfied when one isn’t even notified when a large workplace is closed down.”

Hilmarsson expressed concern that milk production in the region will decrease following the closure of the Blönduós dairy and service to farmers worsen. “It is therefore a rather negative development.”

“We are interested in learning what ideas the representatives of MS [the umbrella dairy company] have about the condition of the facilities and we will discuss that with them. We also want to know what kind of a rationalization this move is and what results it is supposed to deliver,” Hilmarsson continued.

Sigurdsson said the facilities will be used for processing seafood from here on out.

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