Dairy closes with 279 job losses

Advertisement

The Dairy Farmers of Britain creamery in Bridgend has closed with the loss of nearly 300 jobs

Receivers have confirmed 279 jobs are to be lost after failing to reach a deal to save a south Wales dairy.

The Dairy Farmers of Britain (DFB) is closing its Bridgend operation on Friday, a week after the UK-wide co-operative went into receivership.

PriceWaterhouseCoopers said the decision was "unavoidable" and said there was a lack of interested buyers.

A deal to safeguard 170 jobs at DFB's Denbighshire plant, used by 300 farmers, was announced on Thursday.

DFB went into receivership last week, putting 2,000 UK jobs at risk.

The agricultural cooperative has 1,800 member farmers who supply over one billion litres of milk a year, and is responsible for 10% of UK milk production.

All our members are understandably devastated John Gorle, Usdaw union

The Bridgend site, acquired in 2006, was capable of processing 200 million litres of milk each year, supplied by farms across south Wales.

The receivers had tried to find a buyer for the factory. Dairy products firm Milk Link bought the Llandyrnog plant for an undisclosed sum.

'Concern'

Stephen Oldfield, of receivers PriceWaterhouseCoopers, and manager of DFB, blamed continuing losses at Bridgend and the lack of a credible funded buyer.

He said: "There is, of course, much concern given the number of jobs involved." He said the business was making "significant losses" after key customers pulled their support for the dairy.

It was then being run on a "margin-managed" basis, meaning losses were being paid for out of farmers' milk cheques.

"Given the farmers have already lost significant sums, we cannot expect them to continue to fund the liquid division's losses," he said.

The Bridgend closure follows the closure of DFB's Lincoln dairy, with the loss of 127 staff, earlier this week, and another 200 at Blaydon, Tyneside.

Welsh rural affairs minister Elin Jones said it was "extremely disappointing" and she regretted no viable future could be found for the site in the short term.

"The Welsh Assembly Government has worked closely with the receiver but unfortunately the reality of the market has proved impossible to complete any deal within the short timeframe available," she said.

Efforts would continue to minimise the impact on workers, farmers, local communities and the supply chain, she added.

A meeting is planned with the receivers, banks and other organisations early next week.

John Gorle, Usdaw national officer, said: "We are again appalled and frustrated at the receivers' decision to close the Bridgend and Blaydon dairies as well as the Lincoln site without consultation.

"All our members are understandably devastated."

He said they wanted urgent talks with the receivers, with the announcement made without the 90 days consultation.