Workers at a west Wales cheese packing plant fear they may lose their jobs after Dairygold Consumer Foods UK opened a 90-day consultation with staff.

The company at Felinfach in Ceredigion is a subsidiary of the Irish dairy product processor Dairygold and has the capacity to pack 1000t of cheese a week.

It is understood that throughput in the last year totaled only 10,000t. Most was Dairygold branded cheese.

“Despite continued business development efforts the facility continues to operate well below capacity,” said site manager John Thomas.

“If a solution cannot be found, the management will need to consider ceasing operations.”

Spokesmen for both McLellands and First Milk said there was no link between their successful Aeron Valley Cheese factory and the adjacent Dairygold facility.