US dairy cooperative Foremost Farms is planning to shut a facility just as the industry is said to be investing $13bn in production.
The business, which represents farmers in seven states, announced it will close its Marshfield cheese manufacturing site in Wisconsin in December.
Foremost Farms added in a statement it will also “discontinue production of 40lb block cheese as part of a strategic realignment of its product portfolio to meet evolving market demands”.
The co-op explained: “The decision follows a comprehensive review of changing dairy market dynamics, including increased US cheese production capacity and shifting consumer demand.
“As Foremost Farms continues to evaluate opportunities to create long-term value for its members, customers and the cooperative, the company is focusing resources on areas that best position the business for future growth and success.”
President and CEO Brenda Dehart said: “The Marshfield team has consistently demonstrated dedication, professionalism and excellence. This decision was incredibly difficult and is based solely on changing market conditions and long-term needs of our cooperative.
“We are deeply grateful for the contributions our employees have made over the years and are committed to supporting them through this transition with respect, dignity and care.”
The closure of the plant, which dates to the 1950s, will result in the loss of 68 jobs.
As well as cheese, the co-op produces butter, fresh milk and dairy ingredients. It also operates other plants in Wisconsin in Appleton, Clayton, Lancaster, Reedsburg, Middleton and at Richland Center. It also runs a facility in Greenville in Michigan, according to its website.
Another cooperative, Dairy Farmers of America (DFA), announced the closure in June of its St. Albans facility in the state of Vermont with the loss of about 80 jobs.
Despite the closures, US processors are investing $13bn in new and expanded manufacturing capacity across 19 states, according to data from the International Dairy Foods Association (IDFA).
The organisation claims the US dairy industry will process 15 billion more pounds of milk by 2030.
Writing in a recent article, Just Food columnist Victor Martino suggests one of the drivers behind the investments is protein, with dairy well positioned to benefit.
Land O’Lakes, for example, recently announced it would invest $34m at its facility in Tulare to “help meet increasing demand for dairy ingredients”.
Dairy giant Danone also revealed last year that it planned to expand its yogurt factory in Ohio with a “multi-million-dollar investment”.
