After General Mills Posts Drop In Profits, Future Of Lodi Cereal Plant Looks Bleak

LODI (CBS13) — Around 430 jobs at the General Mills plant in Lodi could disappear as the facility that primarily manufactures cereal may be shutting down by next year.

The company posted a 25 percent drop in profits on Wednesday, primarily from weak demand from breakfast cereal and other packaged products.

David Donia has been at the plant for 30 years. He's one of the employees who learned on Thursday that they may lose their jobs. He doesn't know what he's going to do next.

Pat Patrick with the Lodi Chamber of Commerce says losing the high-paying manufacturing jobs would have a negative impact on the local economy where the plant has been a staple for decades.

"Manufacturing jobs create what we call primary money—money that comes from outside the community, into the community," he said.

A Wheaties mural is proudly displayed off of Elm Street in downtown. The cereal was first produced at the Lodi plant.

Judy Peterson has owner Pret clothing store for 31 years, and worries what the closure could mean for her.

"We are a lot of small businesses and we need to have large businesses to contribute to our community's welfare," she said.

General Mills has also been a huge contributor to local nonprofits.

"The employees give so much to the local United Way drive, hundreds of thousands of dollars, so its a big hit economically on many different levels," Patrick said.

But the production line faces a permanent shutdown if General Mills and union officials can't reach an agreement.