Dairy Farmers of America (DFA) will end manufacturing operations at its Goshen, Indiana plant after “carefully assessing” long-term changes in milk production and demand.

The move is part of the US milk cooperative’s broader strategy to “optimise capabilities” across its plant network.

The milk volume presently processed at the Goshen plant will be redirected to nearby facilities.

“This was a difficult decision, but we have a responsibility to operate financially sound businesses that bring additional returns to our family farmer-owners’ investment in the cooperative," DFA said in a statement.

The closure, scheduled for 2 January 2025, will affect 40 employees.

“We are committed to working with employees to help them through this transition,” the cooperative added.

Despite the closure of manufacturing, the plant's warehouse will remain operational, supporting the DFA network with technical services.

The DFA clarified to Just Food, that the Goshen plant did not produce branded or retail products, but manufactured condensed milk for business-to-business (B2B) customers.

The group now operates 80 manufacturing facilities across the US, excluding the Goshen plant.

In a similar move, the US cooperative closed its manufacturing plant in Hughson, California in July 2018.

The shutdown of Hughson plant impacted 34 people employed at the site built in 1911.

Due to outmoded technology and infrastructure, DFA was forced to shut down its Plymouth, Wisconsin manufacturing plant in January 2016.

The Plymouth facility, which had been in operation since 1954, produced cheese for Borden Dairy as well as some private-label cheeses.