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Wisconsin’s largest dairy cooperative, Foremost Farms USA, announced it will close its Plover cheese plant, affecting approximately 42 employees. The facility, which primarily manufactures Italian cheese varieties, is scheduled to cease operations on January 15, 2024.
Greg Schlafer, President and CEO of Foremost Farms, cited ongoing economic challenges and market conditions as primary factors in the decision. “This was an extremely difficult decision,” Schlafer said in a statement. “The Plover facility has been part of our cooperative for many years, but current market dynamics and the plant’s aging infrastructure have made continued operations unsustainable.”
The Plover plant, acquired by Foremost Farms in 1986, has been facing increasing maintenance costs and operational inefficiencies due to its aging equipment and facility layout. Company officials indicated that the plant would require significant capital investment to remain competitive in today’s rapidly evolving dairy industry.
Foremost Farms has stated that milk currently processed at the Plover facility will be redirected to other plants within their network, ensuring continued market access for their dairy farmer-members. The cooperative operates multiple processing facilities across Wisconsin and Michigan, producing a variety of cheese and dairy ingredient products.
The closure comes amid broader challenges facing Wisconsin’s dairy industry. Despite being America’s Dairyland, the state has seen a steady decline in the number of dairy farms over the past decade. According to data from the Wisconsin Department of Agriculture, Trade and Consumer Protection, Wisconsin lost nearly 40% of its dairy farms between 2012 and 2022, though milk production has remained relatively stable due to increasing herd sizes on remaining farms.
Mark Stephenson, former Director of Dairy Policy Analysis at the University of Wisconsin-Madison, explains that consolidation has become a necessary survival strategy for many dairy processors. “The economics of scale are significant in dairy processing,” Stephenson noted. “Older, smaller plants often struggle to compete with newer, more efficient facilities that can process larger volumes at lower per-unit costs.”
For the 42 employees affected by the closure, Foremost Farms has indicated it will provide severance packages and transition assistance. The cooperative is also working with local workforce development agencies to help displaced workers find new employment opportunities, potentially at other Foremost Farms facilities where positions are available.
Local officials in Plover expressed concern about the economic impact of the plant closure on the community. The facility has been a significant employer in the area for decades and contributes to the local tax base.
“We’re disappointed to lose Foremost Farms as an employer in our community,” said Plover Village Administrator Dan Mahoney. “Our immediate focus is supporting the affected workers and their families during this transition.”
The closure reflects broader trends in the U.S. dairy industry, which has been undergoing significant structural changes. Dairy processors across the country have been consolidating operations to improve efficiency and reduce costs amid fluctuating milk prices and changing consumer preferences.
Industry analysts suggest that smaller, specialized cheese plants may continue to face pressure as larger, more automated facilities gain market share. However, Wisconsin’s strong cheese-making tradition and infrastructure continue to position the state as the nation’s leading cheese producer, with over 25% of all U.S. cheese production.
Foremost Farms USA, headquartered in Baraboo, Wisconsin, is a farmer-owned milk processing and marketing cooperative with approximately 1,100 dairy farmer-members across seven Midwestern states. The cooperative produces cheese, butter, and dairy ingredients for food manufacturing customers nationally and internationally.
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14 Comments
This is certainly disappointing news for the Plover community and the employees affected. Aging infrastructure and market pressures can make tough decisions like this necessary for cooperatives to remain competitive. Hopefully Foremost Farms can find ways to support the displaced workers during this transition.
Agreed, plant closures are always hard on local communities. It will be important for Foremost Farms to work closely with employees and explore options like potential transfers to other facilities if feasible.
The closure of the Plover cheese plant is certainly a blow to the local community. However, the economic realities faced by Foremost Farms seem to leave them little choice. Hopefully they can provide meaningful support and transition assistance to the displaced workers during this difficult time.
You make a fair point. While plant closures are always painful, Foremost Farms appears to be acting pragmatically to ensure the long-term viability of the cooperative. Mitigating the impact on workers should be a top priority.
The closure of the Plover facility is certainly a setback for the local community, but Foremost Farms appears to be making a tough yet necessary decision to ensure the long-term viability of their cooperative. While never easy, consolidation and modernization are often essential in today’s rapidly evolving dairy industry.
Agreed, these types of decisions are never easy, but Foremost Farms seems to be acting proactively to address the economic realities they face. Supporting the displaced workers during this transition will be crucial.
This is an unfortunate situation for the employees and the Plover community. The dairy industry is facing significant headwinds, and cooperatives like Foremost Farms have to make tough choices to remain competitive. Hopefully they can provide robust transition support for the affected workers.
Agreed, the closure of the Plover plant is a difficult but necessary move given the economic realities. Cooperatives have to make strategic decisions to stay viable, even when it means shutting down aging facilities.
It’s unfortunate that the Plover facility is no longer viable, but the cooperative’s leadership appears to be making a tough but prudent decision. Aging infrastructure and evolving market dynamics leave them little choice. I hope they can find ways to minimize the hardship for the affected workers.
Agreed, these types of decisions are never easy, especially for long-standing facilities. However, the cooperative likely has little choice but to focus on its long-term sustainability and competitiveness.
The dairy industry is facing significant challenges with rising costs and evolving consumer preferences. While plant closures are never easy, Foremost Farms seems to be making a difficult but pragmatic decision to ensure the long-term sustainability of their cooperative. I hope they can find ways to mitigate the impact on workers.
You raise a good point. Consolidation and modernization are often necessary for cooperatives to stay competitive in today’s dairy market. Hopefully Foremost Farms can support the impacted employees through this transition.
While the closure of the Plover cheese plant is certainly disappointing, Foremost Farms appears to be making a pragmatic decision based on the economic challenges facing their cooperative. Maintaining long-term competitiveness and sustainability is crucial, even if it means difficult choices like this one.
You make a fair point. Cooperatives like Foremost Farms have to balance the needs of their farmer-members with the realities of the market. Hopefully they can find ways to mitigate the impact on the affected employees.