The Los Banos milk powder plant is being closed by California Dairies, Inc. just a year shy of its 100th anniversary of operations. Google Street View image

Visalia-based California Dairies, Inc. (CDI), the leading dairy processing cooperative in the state, announced Monday that it would immediately cease operations at its Los Banos manufacturing facility.

The closure will affect about 38 employees at the plant that makes milk powder.

Brad Anderson, president and CEO of CDI, said in a statement that closing the plant was a difficult step.

“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,” Anderson said. “The Los Banos plant and its employees will hold a special place in our company’s history.”

CDI officials said they will be working with the impacted employees to assist them with the transition.

The plant in Los Banos has been in operation since 1925, first operating as part of the San Joaquin Valley Dairymen cooperative prior to merging with Danish Creamery and California Milk Producers in 1999 to become CDI.

CDI produces about 40% of California’s milk. The cooperative is co-owned by more than 300 dairy producers who ship nearly 17 billion pounds of milk annually.

CDI manufactures butter, fluid milk products and milk powders and produces popular butter brands Challenge and Danish Creamery.

Their products are available in all 50 states and in more than 50 countries.