Fonterra has confirmed the permanent closure of its Kaikoura site which will result in the loss of 22 staff.
Fonterra said those staff had all been offered redeployment, with around half indicating they would take up the offer.
Fonterra's New Zealand manufacturing director Mark Leslie said the company had a responsibility to its farmer shareholders and unit holders to be as efficient as possible across the business, especially given the low milk price.
He said Kaikoura's cheese volumes would be split between other Fonterra plants, where cheese production was up to 16 percent more cost effective than at Kaikoura.
Earlier this month Mr Leslie said moving production to other sites would bring significant cost savings for the business and its 10,500 shareholders.
The final day for processing at the specialty cheese plant is expected in mid to late April.