'A surprise and a disappointment': Sudbury dairy to close a year after getting $1.4M from province

A Sudbury dairy that received $1.4 million in provincial funding from the Northern Ontario Heritage Fund last year to convert to plant-based milk is shutting its doors.

Lactalis has announced that 33 jobs will be cut in December when the plant, formerly known as Palm Dairy, closes down.

The company declined an interview, but in a statement called it a "difficult decision" based on a "sustained decline" in the sales of plant-based milk caused by "a shift in market dynamics and the challenges associated with the broader economic climate."

Asked about the provincial funding it received last year, Lactalis said that it is "grateful" for the support of the Ontario government, noting that the money was a "small part of the overall investment and not a factor regarding the commercial viability" of the Sudbury plant.

The company also said in a statement that it will "act on the terms of the funding agreement" with the province.

The CBC asked the Ontario government for comment, but has not yet heard back.

Twenty-six of those 33 dairy workers are represented by United Food and Commercial Workers Locals 175 and 633.

Debora De Angelis, the union's director of political action and member engagement, said the news of the shutdown was a surprise for workers. 

"Absolutely! Given the significant investment that this company made recently in refurbishing its entire facility, this announcement was definitely a surprise and a disappointment," she said. 

"You know, companies close for a variety of reasons. I think we as the union are working on supporting our members through this difficult transition."