California Dairies, a prominent milk marketing and processing cooperative based in the U.S., has declared the immediate closure of its manufacturing facility located in Los Banos. This plant specialized in producing milk powder and processing fluid milk.
The shutdown will impact approximately 38 employees, highlighting the operational challenges within the food and beverage industry. California Dairies’ president and CEO, Brad Anderson, attributed the closure to the “evolving dynamics of the marketplace and shifting milk supplies.”
He emphasized that the decision to cease operations was “difficult” and made after careful consideration. Anderson acknowledged the contributions of the workers in Los Banos, stating, “We are committed to supporting them through this transition. The Los Banos plant and its employees will hold a special place in our company’s history.”
Amid these developments, California Dairies reiterated its commitment to work closely with affected employees to assist them during this challenging period.
Established in 1925, the Los Banos facility originally belonged to the San Joaquin Valley Dairymen. It merged with Danish Creamery and California Milk Producers in 1999, culminating in the formation of California Dairies. The cooperative is owned by over 300 dairy producers and is widely recognized for manufacturing butter under the Challenge and Danish Creamery brands, as well as fluid milk products and milk powders.
In a prior announcement, California Dairies had indicated its intention to close the Los Banos facility back in 2018. However, the operations were only temporarily halted in March 2018, resuming the following February.
In addition to the Los Banos site, California Dairies operates several other manufacturing plants in California, including locations in Turlock, Fresno, Visalia, and Tipton. The latest facility in Bakersfield is set to commence production of extended shelf-life and aseptic milk products from December.
This recent closure is not the first for California Dairies. In July 2020, the cooperative also shut down its Artesia plant, resulting in the loss of 49 jobs.
As market conditions continue to fluctuate, stay updated on trends in the food and beverage sector, including shifts in the food and drink business and evolving consumer preferences. Understanding these dynamics can provide insight into the future of the industry.
