Fernbridge Humboldt Creamery announced plans to cease production of fluid milk at its Fortuna, Calif., headquarters facility, and instead, send the milk down to a Modesto, Calif., facility for processing.

“Unfortunately, one of our principal customers of fluid milk informed us they have entered into a supply agreement with a large national milk provider,” the company said in a statement to Refrigerated & Frozen Foods. “Because we are a small, family-owned dairy, their decision directly impacts our business in the short term, as the loss of fluid milk production reduces our staffing needs. As a result, we will be forced to eliminate 10 positions. Looking ahead, we are actively pursuing other possible products and customers to offset this loss of business. More importantly, we remain committed to Fernbridge playing an important role in our business today and in the future."