French Sodiaal Announces Closure of Malestroit Cheese Facility Amid Restructuring Plans

French dairy giant Sodiaal has unveiled a strategic decision to close its Malestroit cheese production site. This move is part of a broader restructuring aimed at tackling increased competition in the Emmental cheese market, which is seeing intense price pressures from retail and foodservice channels in addition to the rise of private labels from EU manufacturers.

Manufacturing of the Swiss cheese variety Emmental will be relocated to Sodiaal’s Montauban-de-Bretagne facility in 2028 or 2029.

Sodiaal communicated that this transition is essential for maintaining competitive industrial cost prices and ensuring market accessibility. Despite the closure, the dairy heavyweight plans to establish an employment management plan through negotiations with Entremont Alliance trade unions and will assist affected employees individually.

Additionally, the company plans to transfer research and development functions from Malestroit to Montauban-de-Bretagne, ensuring sustained operations until the full transfer is completed. Sodiaal has also committed to continued investment in Malestroit to support its operations until production is fully transferred.

Remarkably, the company acknowledged that expanding production at Montauban-de-Bretagne could accommodate the same 15,000 tonnes output of Emmental at a cost of €30 million, significantly less than the €50-70 million investment required to maintain operations at Malestroit with only minimal improvements in efficiency.

Sodiaal operates 53 sites across France, including dairies, cheese factories, and production facilities, and works with 15,295 dairy farmers, employing around 8,888 people. The company's decision comes after a series of closures, including those at its Campbon dairy and Saint-Martin-Belle-Roche site.