VISALIA – California Dairies, Inc. announced the immediate closure of the company’s Los Banos manufacturing facility after 99 years in operation.
The closure was announced on Oct. 28 and will impact 38 employees working at the plant. The facility manufactured powdered milk products which continue to have a high value in global markets. The U.S. is the global leader in powdered milk exports with an annual value of $3.07 billion. The powdered milk industry globally is around $33 billion and is experiencing about 4% growth annually.
“Closing the Los Banos plant was a difficult decision, one that was not made lightly,” said Brad Anderson, president and chief executive officer. “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 recognize 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.”
The company said in the press release that it will continue to work with the impacted employees and their families to help with the transition. The closure of the plant was immediate, though it will go through a shutdown process before it is fully abandoned.
Visalia-based California Dairies Inc. is the largest producer of milk products in the Valley with about 40% of the share of the marketplace. The company primarily markets and sells milk products while individual family-run farms produce the milk. California Dairies does not own any dairies itself. More than 180 owners are part of the California Dairies family.
Stacy Heaton, vice president, communications and public relations for California Dairies said in a telephone interview that the company is in the process of building a new facility in Bakersfield.
“We are calling it Valley Natural Beverages and it is a new product for us,” Heaton said. “We are going to be doing extended shelf life and aseptic milk.”
Aseptic milk is a product that is treated to ultra-high pasteurization and packaged in a sterile facility to allow for extended shelf life. The product is shelf stable without refrigeration for up to six months making it a viable alternative to powdered milk. The market value of aseptic milk is anticipated to reach more than $24 million by 2026 and is growing at a rate of 12.4% according to IndustryARC.
Dairy continues to be the leading agricultural commodity in Tulare County with an annual value of $2.67 billion in 2022. Value was down in 2023 due to a reduction in milk prices after milk posted record prices per hundredweight in the previous year.
