FALMOUTH, Maine (NEWS CENTER) -- More uncertain times for many of Maine's Organic Dairy Farms. On Friday, Moo Milk, A Maine Organic Milk cooperative formed by a dairy farmers nearly five years ago, announced today it was closing its doors.

In a statement posted on it's website, CEO Bill Eldridge said that obsolete equipment and a lack of resources to invest in a new facility were hurdles that were too great to overcome.

"We have always insisted on having the freshest, highest quality milk on the market and if we thought we could continue to deliver on that promise we would," said MOO CEO Bill Eldridge. "But, sadly, due to these processing issues, we are currently unable to meet those important standards."

Eldridge went on to say that Moo Milk is helping its 12 contributing farms secure long term contracts for their milk. They do have a short term agreement to ship their raw product to Stonyfield Farms Yogurt processing facility in Londonderry New Hampshire.

Moo Milk worked with 12 dairy farms , and had 5 employees in Maine. It was using donated equipment from Smiling Hill Farms in Westbrook that was outdated and obsolete.

One of the farmers in the cooperative, Spencer Ateil of Two Loons Farm in South China says the closure will hurt some farmers worst than others, especially those in northern half of the state who wont be easily able to truck their milk to New Hampshire.

"I think there's some real differences between various farmers I think some of us are comfortable in moving forward and others are pretty irritated I would say I talked to one guy who's like gosh maybe I'll have to give up on organic and go conventional and that's not really what we were trying to achieve.

Moo Milk says it has enough cash on hand to honor all it's commitments and will not be declaring bankruptcy.

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