PORTLAND, Ore. (KATU) — Alpenrose says it will close its butter plant in Clackamas and lay off about 35 employees to focus on the production of milk.

The move is part of the company’s consolidation of its dairy operations. The company will stop production at its Clackamas facility on March 31.

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The company wanted to expand its production of dairy products and acquired the Clackamas facility in 2022. But it said it “faced economic headwinds.”

“With the purchase of Larsen’s Creamery, our plan was to grow our dairy manufacturing offerings and footprint. However, worsening butter market economics and a shift in the competitive landscape has impacted the facility’s financial performance. Ultimately, we couldn’t find a sustainable solution to continue production long-term,” said Dusty Highland, CEO of Alpenrose.

The company said it will provide severance packages to the affected employees.

The company will continue producing milk at its facility in Kent, Washington.

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