Home / Business and Economy / Dairy Giant Quits California: Jobs Lost, Texas Gains
Dairy Giant Quits California: Jobs Lost, Texas Gains
21 Dec
Summary
- Leprino Foods closes its 115-year-old California plant.
- High operating costs in California drive the decision.
- A new Texas facility will absorb production and jobs.
Leprino Foods, the world's largest mozzarella producer, is ceasing operations at its Lemoore, California dairy plant, marking the end of an 115-year presence. This decision, announced in November of last year, will impact an estimated 300 employees who will lose their jobs early next year.
The company attributes the closure to several factors, including the aging facility, significant capital required for upgrades, and burdensome operating expenses in California. Notably, Texas offers a less demanding corporate franchise tax and lower payroll tax obligations, making it a more cost-effective location for business.
Further advantages in Texas include substantially cheaper agricultural land, six times less expensive per acre than in California. The company's new Lubbock, Texas facility, opened in January 2025, already employs 300 full-time workers and is expected to double its staff by next year, absorbing production from the Lemoore plant.
