Western Canadian dairy supplier Dairyworld Foods is shutting down its Dauphin, Man., plant and consolidating cheese operations in Winkler, the company announced March 31.
The move is part of a larger restructuring initiative which included buying up McCain Foods’ Ontario-based cheese operations.
Dan Wong, a spokesperson for the company in Vancouver said that deal is pending approval by the competition bureau, but if it goes through, Dairyworld products will be sold across Canada.
“As a strategic fit it is a nice arrangement for Dairyworld,” said Wong, but it leaves the company looking for ways to cut costs and reduce duplication.
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“The fact the cheese operation will go right across Canada is more incentive to streamline the facilities that are there.”
Location was the main factor behind the decision to consolidate cheese operations in Winkler, he said.
“The advantage is you’re closer to the end market and to milk producers.”
Thirteen full-time and six part-time employees will be laid off when the move becomes effective July 7. Some jobs may be created in Winkler, but most workers will be offered severance packages, he said.
The recent acquisition of McCain Refrigerated Foods Inc. includes three cheese plants in Ontario that distribute product across Eastern Canada.
The Dauphin facility will continue to operate as a distribution centre for the community and surrounding area once the change is complete.
