COVID-19 Closes Cheese Plant in Wisconsin

Even before the pandemic hit, the facility was in need of 'substantial' equipment upgrades.

On May 18, 2020, Foremost Farms USA announced plans to close its cheese manufacturing plant in Chilton, Wisconsin. Built in the 1940s, the facility makes cheese that is sold into the food service market, mostly for sandwiches and pizzas.

The 53 employees can apply for open positions at other company locations, but as of July 2020 they will be out of work.?Foremost Farms has 10 additional locations in Wisconsin as well as plants in Michigan and Minnesota.?The company will be working on severance package in the coming weeks.?

COVID-19 has changed the market and work order volumes from food service clients have decreased in a short period of time, creating product over capacity and a sudden production demand drop.

According to a spokesperson, Foremost’s plants are running at 10% to 15% below capacity, depending on the week.

The company doesn't expect an immediate bounce back in cheese orders from food service clients.

According to Greg Schlafer, president and CEO, the move is a "business decision." He says long-term investments in the plant don’t make “strategic sense.” He says,"We have other plants with upgraded technology and optimized logistics that will drive significant cost efficiencies.”

According to the company spokesperson, manufacturing footprints evolve and change with the market, and Foremost is always reviewing its network, looking for ways to improve operational efficiency and effectiveness. To be competitive, the long-term investments needed to upgrade the equipment and technology in Chilton would have been substantial.

More in Food & Beverage
江苏福彩网 天水市 永康市 成都市 商洛市 大庆市 镇江市 临夏市 阜新市 巴中市 萍乡市 崇州市 邓州市 平度市 河津市 台中市 衡水市 明光市 凤城市 吉林省 石首市 龙海市 黄石市 叶城市 都匀市 武穴市 朝阳市 青岛市 凤城市 葫芦岛市 仙桃市 合肥市 孝感市 邢台市 兴城市 平度市 利川市 洮南市 信阳市 常州市 宁国市 南阳市 徐州市 北宁市 邢台市 鹿泉市 池州市 北宁市 台中市 华阴市 延吉市 铁力市 兴城市 淮安市 汉川市 东阳市 焦作市 西安市 佛山市 潍坊市 甘肃省