Kemps, a US-based dairy processor, is set to shut its Duluth milk processing facility on 4 October, a move which will lead to 35 job losses.
The company stated that the decision has been made due to declining milk production volumes and slump in milk consumption.
Following the closure, Kemps will continue to sell and distribute the Arrowhead milk brand, about 25 employees will stay on in sales and distribution departments.
Kemps has been a partner of Franklin Foods since 1982 at Duluth's Lincoln Park site. With this closure, the company will have two processing plants in Minneapolis and Rochester of Minnesota; Fargo, North Dakota and Milwaukee.
Kemps spokesperson Rachel Kyllo said the company will still procure milk from the same farmers; however, it will be processed at Minneapolis facility and then transported to the Duluth distribution center.
Headquartered in St. Paul, Minnesota, Kemps is a wholly-owned subsidiary of Dairy Farmers of America and is a manufacturer and distributor of dairy products and frozen desserts.
