US-based dairy co-operative Dairy Farmers of America (DFA) is set to close operations at its milk processing plant in Monett, Missouri later in 2013.
The move is due the scarcity of milk supply because of high feed prices and the recent drought in the region.
Approximately more than 86 employees currently working at the plant are set to lose their jobs.
DFA board of directors member Larry Purdom was quoted by The Joplin Globe as saying that due to milk supply scarcity, the plant is unable to run on full volume.
"We were having to go out and get about half of it from western Kansas or Texas," Purdom added.
"At the time we started with Schreiber's we had enough milk, but that's really changed in the last two years.
"Most of the dairy farms were in Southwest Missouri, which was hit really hard by the drought. A lot of dairy farmers have just given up and sold out."
Schrieber Foods, which leased space to DFA, will hire some employees and the reamaining will be employed at DFA plants and other food companies in the region.
DFA manufactures and markets several brands, including Kemps - 1,500 varieties of dairy products including fluid milk, and Guida's Dairy - milk, creamers, orange juice, sour cream, cottage cheese, butter and seasonal beverages to grocery stores throughout the country.
