All milk consumed on O'ahu will be shipped in by the end of summer following the closing of the island's two remaining dairies.

Wai'anae's Mountain View Dairy will deliver its last milk soon, possibly today. That will make Pacific Dairy O'ahu's only remaining milk producer, and it plans to shut down later this summer.

"It's mind-boggling to think that Hawai'i can't produce its own (milk), especially in a climate that's so conducive to agricultural production," said State Sen. Clayton Hee, D-23rd (Kane'ohe-Kahuku). "If Mountain View is the way of the future, then sustainability certainly will not include livestock production."

The pending loss of O'ahu's remaining dairies follows years of declining production amid rising feed, shipping and land costs, urban encroachment, environmental regulations and stagnant sales.

As recently as 1999, there were five dairies on O'ahu and five on the Big Island. The closing of Mountain View and Pacific Dairy would leave Hawai'i with just three Big Island dairies.

Prior to the closing of O'ahu's two dairies, statewide milk production satisfied less than one-third of demand. In the 1980s, all milk consumed in the state was locally produced.

In the first three months of this year, Hawai'i dairies produced 12 million pounds of milk, down 22 percent from the same period in 2006.

Big Island dairies still produce nearly all Big Island milk, and even export small amounts of milk to O'ahu in the summer when schools are out.

A lack of locally-produced milk means O'ahu's schoolchildren soon will be consuming more Mainland milk. For decades schools received local milk in an arrangement that provided kids with fresh milk while giving local dairies a guaranteed market.

The decline in milk production statewide comes despite price controls, which were put in place in the 1960s to protect local producers. Unlike any other commodity, the price of milk is controlled by the state.

In an attempt to further stabilize the livestock industry, lawmakers this year passed a bill creating a $3 million-a-year, two-year program aimed at subsidizing feed costs for livestock producers.

That bill, which has yet to be signed by Gov. Linda Lingle, is too little too late, Hee said.

"The Legislature in my opinion has done very little to support livestock producers," he said.

Jeri Kahana, commodities branch manager for the state Department of Agriculture, said dairy producers face crushing feed and transportation costs, which make it difficult to remain in business.

"It's heartbreaking," she said. "It's an indication that Hawai'i will be more dependent on imports."

Mountain View Dairy officials were not available for comment. However, an unidentified man answering the phone at the company's offices yesterday said the dairy is closing and will deliver its last milk today. No one answered the phone at Pacific Dairy yesterday.

Carissa Tourtelot, a spokeswoman for Hawai'i's sole milk processor, Meadow Gold Dairies, said Mountain View's closing isn't expected to impact local milk prices or availability.

Reach Sean Hao at shao@honoluluadvertiser.com.