Prairie Farms Dairy is shuttering two manufacturing facilities in Shullsburg, Wis., and eliminating nearly 100 jobs in a move the company says is necessary to strengthen its future operations.
The Illinois-based dairy cooperative filed layoff notices with Wisconsin officials Monday, the same day it announced plans to close the Shullsburg Creamery plant immediately and its White Hill Cheese facility on Aug. 14.
The closures will displace 43 workers at Shullsburg Creamery and 54 at White Hill Cheese, affecting employees across all levels of operations — from production line workers and warehouse staff to maintenance crews and management.
“While these decisions are difficult, they are necessary to strengthen Prairie Farms for the future,” CEO Matt McClelland says in a statement. “Our immediate focus is supporting our employees through this transition.”
The company plans to retain skeleton crews at both plants to oversee the wind-down operations, though those workers face layoffs at an undetermined later date.
A Community Anchor Disappears
For Shullsburg — a Lafayette County community of roughly 1,200 residents — the closures represent a significant economic blow. The nearly 100 jobs being eliminated account for approximately 8% of the town’s entire population.
Prairie Farms characterizes the decision as “part of an ongoing evaluation of its manufacturing network” and says it plans to sell the White Hill Cheese facility after its closure.
The company’s retail cheese store in Shullsburg will remain open, and its employees are not affected by the closures.
What This Signals
The shutdowns come as Wisconsin’s dairy industry continues to consolidate amid ongoing pressures:
- Overcapacity — Many dairy processors are operating with excess manufacturing capacity as milk production shifts and consumer preferences evolve.
- Market pressures — Rising operational costs and competitive pricing continue to squeeze margins.
- Industry consolidation — Larger players are increasingly streamlining operations and closing smaller, less efficient facilities.
Prairie Farms says it thanks employees for their years of service and the Shullsburg community for its longstanding support. The company has offered few details about severance packages or transition assistance for affected workers.
What’s Next
Workers at both facilities now face an uncertain future in a rural Wisconsin community where manufacturing jobs are scarce. The closures add to a growing list of dairy processing plant shutdowns across the state in recent years as the industry continues its painful restructuring.
For Shullsburg, the loss of nearly 100 jobs raises questions about the community’s economic resilience and what will fill the void left by Prairie Farms’ departure.
