The factory was bought by DFB as part of its acquisition of Associated Co-operative Creameries in August 2004.
The co-operative said that efforts to improve the plant’s performance, including rationalising its yoghurt production two years ago, had failed and it had made the decision to cease manufacturing in the interests of the wider DFB business and its members.
The factory is expected to close in the summer with the loss of about 95 jobs. Production of UHT milk and cottage cheese will cease and processing of liquid milk and cream will transfer to other DFB sites.
A DFB spokesman said none of the 50 farmers supplying the Whitby plant would be affected by the closure and their milk would go to the co-op’s other dairies. “The milk might be collected at a different time but that will be it.”