The quiet change, made around June, was noted yesterday in a financial report by the company's Dallas-based parent, Dean Foods Co., which decided the state's largest ice cream production operation was a money-losing concern.

Meadow Gold since has been importing ice cream from Dean Foods' production facilities on the Mainland, and will continue distributing flavors such as Kona coffee, macadamia nut and Hawaiian vanilla bean ice cream under the Meadow Gold and Very Special brands.

"Everything is basically the same," said company spokeswoman Jackie Smythe. "Prices will not be affected. There will continue to be the same flavors."

Smythe said making ice cream was no longer economically feasible for Meadow Gold, which in recent years faced declining demand. Smythe said operating expenses for making ice cream were outstripping revenue.

Smythe did not immediately have Meadow Gold ice cream production data, but the industry suffered two years of production declines in 1999 and 2000 nationally before rebounding slightly in 2001, according to the latest data from the International Dairy Foods Association.

No local ice cream production statistics were available yesterday.

Dave Leong, owner of Dave's Hawaiian Ice Cream Factory in Pearl City, said ice cream consumption has not been the problem. "We're consuming the same, it's just the cost of doing it here is so expensive," he said. "It's so simple, even sugar is cheaper on the Mainland."

Leong also said growing competition from Mainland imports, such as Blue Bunny, in recent years has eroded market share of Hawai'i-made ice cream.

"It just diluted everybody," he said. "You just walk into a supermarket, you can see all the sales — two for $5 — that cuts into sales."

Foremost Dairies-Hawai'i hasn't made ice cream locally since 1992, after the company decided it was more economical to bring in ice cream from the Mainland rather than make costly upgrades to outdated ice cream manufacturing facilities here.

Dean Foods said it took a $3 million pre-tax charge related primarily to closing the Meadow Gold ice cream plant in Honolulu at Young and Ke'eaumoku streets. Fewer than 30 employees were affected by the change, and moved to Meadow Gold's milk processing unit, Smythe said.

Meadow Gold's history with ice cream dates to 1924 when mechanical refrigeration allowed the company's predecessor, the Dairymen's Association Ltd., to make the frozen dessert.

Meadow Gold made 25 different flavors of ice cream, plus other frozen treats such as fudge bars, sundae bars, ice pops — all of which are being made on the Mainland and shipped to the Islands.