Canadian dairy cooperative Agropur has announced plans to close its fluid milk plant in Winnipeg, Manitoba, on 24 September this year.
Following the closure – which will affect a total of 48 employees – the plant’s operations will be transferred to other Agropur fluid milk facilities in western Canada.
The company says the strategic decision has been made in order to optimise its fluid milk manufacturing operations by concentrating them at Agropur’s three other facilities in Burnaby and Victoria in British Columbia, and Edmonton in Alberta.
“Unfortunately, the level of investment required to maintain the plant’s competitiveness in the coming years was becoming too high. We are making this strategic decision to optimise our consumer milk network in western Canada. This will help simplify our business model and ensure our competitiveness,” said Émile Cordeau, Agropur CEO.
Agropur says the employees affected by the closure will be able to take advantage of employment opportunities at other sites and severance packages.
In 2019, Agropur announced it was carrying out an organisational review to increase the profitability of its Canadian operations, after underperforming in its Q3 financial results.
Meanwhile, last December, the company agreed to offload its Canadian yogurt business Ultima Foods to Lactalis Canada.
© FoodBev Media Ltd 2020
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