The blaze broke out at the former creamery in Gustine around 7 a.m. The vacant building is located off Highway 140 near 2nd St.
Merced County Cal Fire crews arrived to find heavy smoke and fire pouring out of the building.
They evacuated 25 homes in the area because of concerns about the fire spreading. Those orders were lifted Sunday afternoon once the blaze was contained to the property.
Right now the damage is estimated at more than $5 million. The cause is still under investigation.