A drop in milk consumption is behind a layoff at a Duluth milk processing facility.
The Duluth News Tribune reports that production for Kemps at the city's Franklin Foods plant will shift to the dairy giant's Minneapolis facility in October. Kemps has been a managing partner of Franklin Foods since 1982. The newspaper reports that will lead to the loss of 35 jobs. WDIO-TV puts the number of lost jobs at 38. Some of the employees losing their jobs have been at the plant for 20 to 30 years.
A spokeswoman for Kemps told the workers that a drop in milk consumption is behind the consolidation of processing. Franklin Foods is the only Kemps processing plant that will close. The company operates four other plants in Minneapolis, Rochester, Fargo, ND, and Cedarburg, WI.
Franklin Foods will continue to sell and distribute milk in the Duluth region under the Arrowhead brand and 25 employees in sales and distribution will continue to have jobs.
The changes are not expected to have any impact on the price of milk and other dairy products.