California Dairies shuts down Los Banos facility

USA – California Dairies, Inc. (CDI) has announced the closure of its Los Banos facility, a decision impacting approximately 38 employees. 

The plant, which focused on milk powder production and fluid milk processing, will cease operations immediately due to “evolving dynamics of the marketplace and shifting milk supplies,” according to CDI’s president and CEO, Brad Anderson.

Anderson expressed appreciation for the contributions of the Los Banos employees, acknowledging the challenges this decision poses for the community and committing to support staff through the transition.

The Los Banos plant has a long history, initially part of San Joaquin Valley Dairymen before merging in 1999 with Danish Creamery and California Milk Producers to form CDI. 

California Dairies, a cooperative owned by more than 300 dairy producers, is a major player in California’s dairy industry, producing approximately 40% of the state’s fluid milk and known for its popular butter brands, Challenge and Danish Creamery.

This closure is part of a broader pattern for CDI. The company temporarily halted operations at the Los Banos facility in 2018, and in July 2020, it shut down its Artesia plant, affecting 49 employees. 

However, CDI continues to expand in other areas, such as its new Bakersfield facility, which is set to start producing extended shelf-life and aseptic dairy products by December. 

These products represent CDI’s strategic move into shelf-stable dairy items, including those that can last up to 30 days in a refrigerator or be stored at room temperature until opened​

California Dairies, Inc. (CDI) is the largest dairy cooperative in California and one of the largest in the United States. 

Founded and owned by over 300 dairy producers, CDI markets about 40% of the milk produced in California, amounting to nearly 17 billion pounds of milk annually. Its product portfolio includes butter, various fluid milk products, and milk powders. 

Among its well-known brands are Challenge Butter and Danish Creamery, both prominent names in the U.S. and global dairy markets. CDI’s products reach all 50 states in the U.S. and over 50 international markets.

CDI has also been making significant investments to strengthen its production capabilities. Recently, it expanded its Visalia plant, adding a third evaporator to enhance its milk powder production. 

This facility upgrade allows CDI to produce high-specification milk powders suited for ultra-high temperature (UHT) applications, which are in demand globally. 

Additionally, in 2021, the cooperative constructed  a new milk bottling facility under the Valley Natural Beverages brand in Kern County, California. 

This facility, expected to support growth in the extended shelf-life (ESL) and UHT milk sectors, reflects CDI’s commitment to sustainability through energy-efficient operations​.

Financially, CDI stands as a major player in the U.S. dairy industry, recently acquiring DairyAmerica to strengthen its global milk powder business. 

Its continued investment in production facilities and sustainable practices underscores its commitment to maintaining a strong financial position while expanding its influence in high-demand markets.

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