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Saputo Closing Six U.S. Facilities by Early 2025, Consolidating Production

June 11, 2024
Cheese plants in Lancaster and Green Bay, Wis., and Tulare and South Gate, Calif., will join closings underway in Belmont, Wis., and Big Stone, S.D.

Canadian dairy giant Saputo is closing six of its U.S. facilities by early 2025 and shifting their production to nearby, more efficient plants in an effort to reduce “duplicate costs” and otherwise optimize operations in its network.

Plants in Belmont, Wis., and Big Stone, S.D., already have been closed, ones in Lancaster, Wis., and Tulare, Calif., are underway, and those in Green Bay, Wis., and South Gate, Calif., were just added to the list. Most of the production – certainly that in Wisconsin – will be absorbed by a new plant in Franklin, Wis. In all, Saputo has 65 plants around the world, with much concentration in the U.S. and Canada.

“We continue to reduce our duplicate costs in our network and continue to optimize the Franklin facility, which will absorb most of the consolidation,” Carl Colizza, chief operating officer said in a fourth-quarter call with financial analysts. Colizza, by the way, will replace Lino Saputo as CEO in August.

In the fourth quarter, which ended March 31, company-wide sales grew by nearly C$1 billion over the previous fourth quarter, but they shrank 6.5% in the U.S., Saputo’s biggest market, to C$1.928 billion (approximately US$1.423 billion). Colizza said there were “unfavorable” market conditions in the U.S.

Full-year sales for the company were C$17.342 billion, a decrease of C$500 million.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

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