The world's leading producer of mozzarella cheese is shutting down a major dairy facility in California, bringing more than a century of local operation to an end and displacing hundreds of workers.
The End of an Era in California's Central Valley
Leprino Foods, the Denver-based supplier to pizza chains like Domino's, Pizza Hut, and Papa John's, will close its plant in Lemoore early next year. The facility, situated in California's rural Central Valley, has been operational since 1910, though Leprino did not acquire it until the 1980s. The closure, announced in November last year to allow staff time to seek new employment, will result in approximately 300 people losing their jobs.
The company attributed the difficult decision to a combination of factors. These include the age of the Lemoore site, the significant capital investment needed for upgrades, high operating costs within California, and the long-term outlook for milk supply. A key element is the recent opening of Leprino's new, state-of-the-art facility in Lubbock, Texas, which has increased overall production capacity.
Business Climate Shift: From California to Texas
A major driver behind the relocation is the stark contrast in the business environments of the two states. California enforces a high corporate tax rate, whereas Texas levies a far less burdensome franchise tax. Furthermore, California imposes higher payroll tax obligations on companies for schemes like unemployment and disability insurance.
Texas also holds a considerable advantage in land costs. According to data from the USDA and the Texas Farm Bureau, agricultural land in Texas is, on average, six times cheaper per acre than equivalent land in California. The 850,000-square-foot Lubbock plant, which opened in January 2025, already employs 300 full-time workers—matching the Lemoore workforce. Reports from Forbes suggest the Texas site is expected to double its workforce by next year.
The modern Lubbock operation is a formidable production hub, capable of processing over 500,000 gallons of milk daily into mozzarella, sweet whey, and sweet cream. To visualise that volume, it is enough to fill an Olympic-sized swimming pool three-quarters full.
Community Impact and Corporate Growth
The closure represents a profound loss for the city of Lemoore. Former employee Dave Costa noted the plant was "one of the highest paying factory jobs in the valley." Leprino's official statement stressed that the choice "in no way reflects the hard work" of the Lemoore team and reaffirmed its commitment to customer service and product reliability.
This move underscores Leprino Foods' dramatic evolution from its origins in the 1950s as a small Italian grocery store making its own ricotta and mozzarella. The late founder, James Leprino, started the business with $615 in savings and built it into a multi-billion dollar enterprise, amassing a net worth of $3.1 billion by 2017.
The shift from California to Texas highlights a broader trend of manufacturing and dairy processing evaluating operational costs, with significant implications for regional employment and economic landscapes.
