LE MARS, Iowa — A 99-year-old Minnesota dairy products company says it will go out of business if Kemps does not continue to produce cottage cheese on its behalf at a Le Mars manufacturing plant.
Bloomington, Minnesota-based Old Home Foods Inc. has sued Kemps for breach of contract and is asking a judge to prohibit Kemps from stopping production of cottage cheese for Old Home by Dec. 31. Old Home says a contract signed with the Le Mars plant’s previous owner requires Kemps to continue production until May 31.
Since Kemps notified Old Home it would cease production of its cottage cheese at the end of the year, Old Home has been unable to find another supplier that can begin production of its cottage cheese by then. Cottage cheese makes up 60% of its annual sales, Old Home said.
“If Kemps will not honor the parties’ relationship just five months …