In the heart of Wisconsin’s dairy country, a significant transformation is brewing that signals a major shift in consumer demand. Associated Milk Producers Inc. (AMPI) has announced a strategic pivot for its facility in Blair, Wis., transitioning the plant from traditional cheddar cheese production to high-capacity cottage cheese manufacturing.
While the move positions the Blair facility to become one of the largest cottage cheese plants in the U.S. by early 2027, the transition comes with a temporary cost for the local workforce.
The Great Cottage Cheese Renaissance
For decades, cottage cheese was often viewed as a vintage diet food, but it is currently experiencing a massive cultural and economic resurgence.
In 2023 alone, U.S. cottage cheese sales surged by 16.6%, driven by a new generation of health-conscious consumers. Last year, cottage cheese grew to nearly 1.2 billion pounds for the first 10 months of the year, the highest level since 1989.
This renaissance has been fueled largely by social media platforms like TikTok, where cottage cheese has gone viral as a versatile, high-protein superfood. From cottage cheese ice cream and bread to high-protein pasta sauces, the product has moved from the back of the fridge to the center of the plate. Brands leading this charge have seen sales exceed $200 million annually, proving that the demand isn’t just a fad; it’s a fundamental market shift.
AMPI’s decision to overhaul the Blair plant is a direct response to this double-digit growth. By the time the project is completed in late 2026, the facility will be an industrial powerhouse, capable of meeting national demand on a scale that few other plants can match.
“Cottage cheese demand is growing rapidly as consumers seek high-protein, low-fat, minimally processed foods. We know AMPI’s globally recognized cheesemaking expertise makes us an excellent fit for producing high-quality cottage cheese,” Sarah Schmidt, AMPI Vice President of Marketing said. “U.S. cottage cheese capacity is stretched and insufficient to accommodate projected growth. AMPI has the capacity and flexibility to transition to cottage cheese production and benefit the co-op’s dairy farmer-owners.”
Temporary Pause for the Workforce
To achieve this vision, AMPI has filed a Worker Adjustment and Retraining Notification (WARN) letter indicating a temporary mass layoff effective March 31, 2026. The layoff will impact 86 employees as the facility undergoes the necessary retooling and infrastructure upgrades.
While the news is a challenge for the Blair community, there is a silver lining of stability:
- Recall rights — The majority of affected workers are represented by Teamsters General Union Local 662. Under their collective bargaining agreement, these employees maintain layoff and recall rights, ensuring they have a path back to their jobs once the plant resumes operations.
- Timeline — AMPI expects the plant to be back online and ready for regular operations by early 2027.
This transition is more than just a renovation; it is a testament to the agility of the Wisconsin dairy industry. By shifting away from commodity cheddar and toward high-growth power foods, AMPI is securing the long-term viability of the Blair facility. When the doors reopen in 2027, Blair won’t just be making cheese; it will be leading a national market trend from the heart of the Midwest.
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