Sudbury Dairy Shuts Down After $1.4M Funding, 33 Jobs Lost

UPDATE: Sudbury’s dairy industry faces a severe blow as Lactalis announces the closure of its plant, formerly known as Palm Dairy, just a year after securing $1.4 million in provincial funding to transition to plant-based milk. The closure, set for December, will eliminate 33 jobs, leaving workers and the community in shock.

Lactalis cited a “sustained decline” in plant-based milk sales as the reason for this “difficult decision.” The company indicated that changing market dynamics and economic challenges played a significant role in their decision-making process. In an official statement, Lactalis expressed gratitude for the Ontario government’s support, highlighting that the provincial funds were a “small part of the overall investment” and did not impact the plant’s commercial viability.

The announcement comes as a surprise to many, particularly to the workers represented by the United Food and Commercial Workers Locals 175 and 633. Union director Debora De Angelis remarked on the unexpected nature of the news, stating, “Absolutely! Given the significant investment that this company made recently in refurbishing its entire facility, this announcement was definitely a surprise and a disappointment.”

The Ontario government has yet to respond to inquiries regarding the funding implications following the closure. With this sudden shift, community members are left grappling with the loss of local jobs and economic stability.

This development underscores the volatility of the dairy market, especially as consumer preferences shift. As Lactalis prepares to close its doors, the focus now turns to how the affected workers will navigate this challenging transition. The union is committed to providing support during this difficult time.

Residents and stakeholders are urged to stay tuned for further updates as this story develops. The closure of the Sudbury dairy plant marks a significant moment in the local economy, reflecting broader trends in the dairy and plant-based markets.