Land O’Lakes Inc. plans to close its butter manufacturing plant in Madison, Wis. and lay off 120 employees.
The cooperative based in St. Paul, Minn., said Madison Dairy would close within 60 days because it no longer is economically feasible to operate.
Spokeswoman Jeanne Forbis said other Land O’Lakes plants around the country would make up for the lost production. She said layoffs are expected to start in mid-May and the plant would close in mid-June, although parts might close earlier.
Casey Langan of the Wisconsin Farm Bureau said the shutdown is the type of thing the industry has tried to avoid, because it reduces infrastructure at the same time the state’s milk production has grown, with cheese plants running at capacity.