VISALIA, CALIF. — California Dairies, Inc. announced Oct. 28 that it closed its milk powder and processed fluids manufacturing facility in Los Banos, California.

The plant, which first opened in 1925, will enter a period of shutdown, per California Dairies.

The farmer-owned dairy cooperative said 38 employees were impacted by the plant closure and people with California Dairies would be “working closely with impacted employees to assist them with this transition.”

“Closing the Los Banos plant was a difficult decision, one that was not made lightly,” California Dairies president and chief executive officer Brad Anderson said.

“This decision was driven by the evolving dynamics of the marketplace and shifting milk supplies,” Anderson said. “We value the contributions of our dedicated employees in Los Banos and recognize the impact this has on them and the community. We are committed to supporting them through this transition. The Los Banos plant and its employees will hold a special place in our company’s history.”

Nearly a century ago, the facility opened as an operation of San Joaquin Valley Dairymen. It merged with Danish Creamery and California Milk Producers in 1999 to become California Dairies, Inc.