Cheese plant sheds half workforce

The company has been in dispute with farmers over the price of milk

Forty jobs are being lost at a cheese plant in Carmarthenshire.

Managers at the Saputo site said severance packages were being offered to around half its workforce at Newcastle Emlyn.

The Canadian-based company has blamed depressed cheese prices and a decision by some producers to stop supplying them with milk in a row over prices.

Saputo Inc bought the plant as part of its acquisition of previous owners Dansco in 2007.

Local councillor Haydon Jones said since then Saputo appeared to have invested heavily in the plant.

But he said there had been a dispute with milk producers over the price paid per litre.

"I'm extremely concerned - it's the worst news possible that we could have had," he added.

Last month around 40 farmers who were selling milk to Saputo, which makes mozzarella cheese, staged a protest and withdrew supplies.

In a statement the company said: "The current depressed cheese prices worldwide puts pressure on both producers and processors.

"As such, for the long-term viability of its operations, Saputo needs to pay a competitive price for milk in line with its type of production.

"As as a result, some producers ceased their supply to us and we needed to downsize our operations to the new milk intake."