January 12, 2007

M.G. Waldbaum to pay US$1 Million penalty for environmental violations

M.G. Waldbaum Company, a subsidiary of Minnesota (US)-based Michael Foods Inc., has agreed to pay a US$1.05 million penalty to settle allegations of Clean Water Act violations caused by its poultry farm.

The settlement involves a large egg processing facility and seven associated poultry farms near the City of Wakefield, Nebraska.

The concern allegations of overloading the wastewater treatment lagoons at the City of Wakefield's publicly owned treatment works (POTW); discharging pollutants from a large pile of poultry waste into Logan Creek without a National Pollutant Discharge Elimination System (NPDES) Permit at its Husker Pride poultry concentrated animal feeding operation (CAFO); and improperly dumping process sludge waste from its egg processing facility at two of its other poultry farms rather than spreading on the ground in accordance with state standards.

As part of the settlement, Waldbaum has committed to comply with a schedule in its current NPDES permit for construction of a wastewater treatment plant to treat the effluent from its egg processing facility. Construction of the new plant would be completed in 2009 at an estimated cost of US$16 million.

Waldbaum has also agreed to apply for a NPDES permit for its Husker Pride poultry farm and implement manure management plans at its other six poultry farms.