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Suiza Dairy Corp., recognized as a frontrunner in the fresh milk sector in Puerto Rico for over 80 years, declared on Wednesday that it will suspend operations at its Vida de Aguadilla Plant due to challenges with regulatory compliance and operational issues arising from the Dairy Industry Regulatory Office (ORIL, as known in Spanish).
The firm stated that the regulatory body has imposed administrative orders deemed arbitrary and in violation of legal standards, which they claim have harmed their competitive edge and financial health. In May 2024, Suiza initiated a lawsuit for contempt in federal court against ORIL due to its failure to comply with regulations and for economic losses incurred.
“Given that our production levels have plummeted to a mere 40 percent of the plant’s capacity, we are compelled to make this tough choice,” Suiza remarked in its announcement. “This adversely impacts both our operations and the market share that is rightfully ours under current laws.”
This operational halt will result in the layoff of 117 employees, who will be provided with benefits as mandated by law. Suiza emphasized its commitment to continue meeting its obligations to suppliers and to maintain its assets in excellent condition while awaiting a favorable outcome at the regulatory or judicial level.
The company reiterated its dedication to the people of Puerto Rico, expressing gratitude for the support received over the past eight decades, while deeply lamenting the effects of this decision on Puerto Rican workers and their families.
