Müller Quaker Dairy in Batavia ended production on Thursday after being sold to the Dairy Farmers of America.
A spokeswoman for the milk cooperative says it has agreed to buy the plant and is exploring several milk handling and manufacturing options, but 64 of the company's 170 jobs are expected to be cut.
A PepsiCo spokesman says transition assistance will be offered to those employees who are losing their jobs.
The $208 million yogurt plant opened with much fanfare in the Genesee Agri-Business Park, just outside of Batavia, in June 2013 using about $14 million in state tax credits and employed around 200 people.
News of the move came hours after Gov. Andrew Cuomo announced that the Finger Lakes Region that includes the dairy has been awarded $500 million in state aid for economic development. The plant was cited as an example of a successful agri-business in the region's application for the aid.
The Genesee County Economic Development Center released a statement saying it is “extremely disappointed” about the company’s decision to exit but says the state-of-the-art manufacturing facility where it was located “will continue to play a key role in the agricultural sector in our region, including remaining a major employer.”
The center says it will continue to invest in the Agri-Business Park and will “do everything we can to assist the impacted employees.”
Müller Quaker Dairy was a joint venture between the Theo Müller Group, Germany’s largest privately-held dairy business, and Quaker Oats Company, a unit of PepsiCo.
The PepsiCo spokesman said Müller brand yogurt wasn't meeting expectations in a competitive and dynamic marketplace.
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