Lactalis American Group plans to close Mozzarella Fresca, an Italian cheese manufacturing plant located in Tipton, California, in September. This move is expected to lead to a loss of 144 jobs.
The facility produces fresh mozzarella and other soft Italian cheeses under the Precious and Galbani label. Lactalis American had acquired Mozzarella Fresca in 2007.
The Tipton facility, which has no further room for expansion, was owned by several firms until it was converted to produce cheese for Mozzarella Fresca. The Tipton facility is expected to be sold to another food manufacturer, according to sources.
It is believed that high milk prices in California may have forced the company to outline the closure plans. In California, the milk industry is controlled by the state, including the price received by dairy farmers.
Following the closure, Lactalis will shift the cheese production to its new $40m mozzarella plant in Nampa, Idaho. The 61,300ft2 plant is located behind the existing Lactalis plant and will increase the site's fresh mozzarella production from 7 million pounds currently to 40 million pounds.
Lactalis American Group is the North American subsidiary of Groupe Lactalis, a leading dairy firm based in France.
