Dairy Crest may shut pension plan

Closure of the scheme to existing staff is one option under consideration

Dairy Crest, one of the UK's biggest milk producers, may become the latest firm to close its final-salary pension scheme to its existing members.

The company employs 8,000 staff, of whom 3,500 are currently paying into the scheme.

It was closed to new members in 2006 and has been in deficit for some years.

The company has started a consultation with its staff over "various options" but is already committed to paying £20m a year extra to pay off the deficit.

"We want to continue to reduce the ongoing liabilities and the risk," a company spokesman said.

The company is one of the UK's largest milk producers and makes brands such as Country Life and Clover butter, Davidstow cheese and Frijj flavoured milk.

The firm's accounts recently showed a deficit in March this year of £63m.

But the company expects that the next full valuation of the scheme, in 2010, will reveal a deficit at least £100m greater.

The consultation involves members and officials of the trade unions Unite and Usdaw.