French dairy giant Sodiaal has unveiled plans to close its Malestroit cheese production site as part of a broader restructuring.
Manufacturing of the Swiss cheese variety Emmental will transfer to Sodiaal’s Montauban-de-Bretagne facility in 2028 or 2029.
The co-op explained the decision is related to increased competition in the Emmental cheese segment, with price pressures coming from the retail and foodservice channels, along with the emergence of private label from manufacturers in the EU.
“The new industrial master plan responds to a strategic challenge for the cooperative’s cheese business. Indeed, the Emmental market is very competitive,” Sodiaal said in a statement sent to Just Food.
Staff representatives for workers at the Malestroit plant were informed of the plans on 7 January. Sodiaal said it has flagged its intentions now in order to provide the “time necessary” to “individually” assist each employee.
The dairy heavyweight will also establish an employment management plan through negotiations with Entremont Alliance trade unions.
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By GlobalDataSodiaal also intends to relocate research and development functions from Malestroit to Montauban-de-Bretagne once the production transfer is completed.
The company added that the closure will not affect milk collection activities in Brittany. Its milk collection centre in Malestroit will be relocated to a nearby location, allowing for the transfer of some employees over a time frame of three to four years, Sodiaal said.
It added: “In order to maintain competitive industrial cost prices and remain accessible to the greatest number of consumers, in order to preserve its volumes and its positions on the market and maintain the value of the milk collected, particularly in Brittany – a region in which 50% of the milk collected is processed into Emmental – Sodiaal has no choice but to optimise its industrial facilities.”
A company-wide analysis found that Malestroit’s production costs were significantly higher than other Sodiaal facilities, partly due to the site’s inability to operate at full capacity without substantial investment.
The Malestroit plant in Brittany produces 15,000 tonnes of Emmental annually, the dairy giant said, adding that its production costs are two to three times higher than those of other regional facilities.
In order to continue to operate the Malestroit site, Sodiaal estimated an investment would be required of €50-70m ($51.9m to $72.6m) but would result in limited improvements in efficiency.
In contrast, expanding production at Montauban-de-Bretagne to accommodate the same 15,000 tonnes would require a €30m investment.
Despite the planned closure, Sodiaal will continue to invest in Malestroit to sustain operations until production is fully transferred.
Over the past five years, the company has invested €10m in the site, with an additional €4-5m planned over the next three years, including €2.3m in 2025.
In February 2022, Sodiaal announced the closure of its Campbon dairy in Loire-Atlantique, which produced UHT milk, along with its Saint-Martin-Belle-Roche site in Saône-et-Loire, where the co-op produced infant-dairy products.
Sodiaal operates 53 sites across France, including dairies, cheese factories, and production facilities, and employs 8,888 people.
The diary giant also works with 15,295 dairy farmers.
