USA – Foremost Farms has announced it will have to close four manufacturing facilities due to a shortage of milk supplies.

It plans to shut down the plants by the end of 2003, and consolidate their activities in its remaining facilities.

A dry products warehouse will also close during the first quarter of 2004, and the co-operative will centralise its purchasing and transportation functions at Baraboo, USA.

David Fuhrmaan, president of Foremost Farms, said: “The decision to close these facilities was driven by economics. As US milk production increased 2.6% last year, we saw a decline in milk volumes in Wisconsin, Minnesota and Iowa, causing excess plant capacity in the region as well as in our production network.”