Chilliwack's Agropur plant on Yale Road east will be closed by this time next year, affecting 42 employees locally.
The decision announced Wednesday by Agropur Cooperative was part of the "optimization" of its B.C. milk processing operations.
The plant will close by late October 2016.
"To remain competitive, Agropur must review and optimize its processing operations on an ongoing basis. Following the recent acquisition of the Burnaby facility, Agropur has decided to consolidate its operations and redirect production to its two other plants in British Columbia," said CEO Robert Coallier.
The Chilliwack employees will be entitled to a support program and the opportunity to apply for equivalent positions at other Agropur facilities, as well as severance pay and continued access to Agropur's Employee Assistance Program.
Agropur officials are aware of the impact locally and they will try to minimize it.
"The decision to close Chilliwack and transfer its volume to our existing B.C. manufacturing facilities was a difficult one," said Serge Paquette, president of Agropur Canada. "It is in no way reflective of the hard work and commitment of our employees at Chilliwack."