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California Dairies has announced the immediate closure of its Los Banos, California, manufacturing facility, affecting approximately 38 employees.

The decision comes in response to changing market conditions and shifts in milk supplies.

The Los Banos plant, which has been operational since 1925, will enter a shutdown period immediately. California Dairies has pledged to work closely with the affected workers during this transition.

The facility has a long history, initially operated as part of San Joaquin Valley Dairymen before merging with Danish Creamery and California Milk Producers in 1999 to form California Dairies. Despite the closure, the company maintains a significant presence "not only in California, but throughout the US and internationally," highlighted the company.

Brad Anderson, California Dairies' president and chief executive officer, said: “Closing the Los Banos plant was a difficult decision, one that was not made lightly. This decision was driven by the evolving dynamics of the marketplace and shifting milk supplies."

"We value the contributions of our dedicated employees in Los Banos and recognise the impact this has on them and the community. 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.”

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