Dairy Farmers of America (DFA) is planning to idle its manufacturing plant at Hughson, California, in response to changing market conditions.
DFA is a national milk marketing cooperative, which is currently owned by more than 14,500 farmer-members that represent approximately 8,500 dairy farms across 48 states in the US.
The cooperative noted that the decision to idle its Hughson manufacturing plant was taken after a careful review process.
“This was a difficult decision, but we have a responsibility to our dairy farmer-owners to operate financially sound businesses that bring them additional returns on their investments.”
DFA Western Area chief operating officer Gary Stueve said: “Business decisions that impact people’s lives are never easy.
“The employees at this facility have done an excellent job producing quality dairy ingredients, and we appreciate their hard work and dedication.”
The Hughson manufacturing plant is primarily engaged in the production of cream, dry milk powder and condensed milk.
The site was originally built in 1911 and DFA has owned the facility since the corporation was formed in 1998.
DFA noted that production activities at the Hughson plant are set to be ceased on 14 September.
The cooperative intends to work with the union and the 34 affected employees in order to help them through the transition period.
Stueve added: “This was a difficult decision, but we have a responsibility to our dairy farmer-owners to operate financially sound businesses that bring them additional returns on their investments in the cooperative.”
DFA previously acquired Cumberland Dairy last November, which is a family owned processor of ultra-pasteurised dairy products based in Bridgeton, New Jersey.
The acquisition expanded the dairy cooperative’s commercial investments and ownership into extended shelf-life processing activities.
Source: Food Processing