Pine River Cheese and Butter Co-operative is closing production at its new plant south of Kincardine at the end of the month.
The store will remain open until inventories are sold. The business employs 25 people.
Chief executive officer Ulrike Prehn said the business was unable to recapture lost sales that were lost while the plant was being rebuilt after a fire in September nine years ago.
Pine River has been in business for 134 years.