USA – Dairy Farmers of America (DFA) will end manufacturing operations at its Goshen, Indiana facility on January 2, 2025, impacting 40 employees.

The decision, driven by long-term shifts in milk production and market demand, aims to  optimize the production network across the United States.

While the manufacturing segment will cease, the warehouse at the Goshen site will remain operational, ensuring continued technical support and storage for the cooperative’s network.

The milk volume currently processed at the Goshen plant will be redirected to nearby facilities, maintaining supply continuity within the region.

DFA, one of the largest milk cooperatives in the U.S., operates 80 manufacturing facilities nationwide. The closure in Goshen follows a pattern of strategic consolidations.

In July 2018, the cooperative closed its Hughson, California plant, impacting 34 employees, due to outdated infrastructure. Similarly, in January 2016, DFA shuttered its Plymouth, Wisconsin plant, citing obsolete technology and infrastructure challenges.

These moves are part of a deliberate strategy to centralize production in modern, efficient facilities to reduce operational costs and increase profitability.

A DFA spokesperson explained the decision: “This was a difficult decision, but we have a responsibility to operate financially sound businesses that bring additional returns to our family farmer-owners’ investment in the cooperative.”

The 40 affected employees at the Goshen plant will face job transitions, and DFA has committed to supporting them through the process.

The cooperative’s focus on B2B manufacturing—specifically condensed milk—means that the closure’s impact on retail markets will be minimal.

Instead, the move affects business customers who rely on the facility for their condensed milk supply, which will now be managed through other DFA sites.

By maintaining the warehouse segment in Goshen, DFA ensures logistical stability. This decision aligns with their strategy to sustain non-manufacturing operations in key regions, preserving technical services and supply chain efficiencies without incurring high manufacturing costs.

 

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