Arla Foods plans closure of Ashby dairy
Arla Foods has announced the proposed closure of its dairy and distribution centre at Ashby-de-la-Zouch, with the aim of transferring milk processing to Buckinghamshire.
The proposed closure of the Leicestershire site, in April 2014, could result in the loss of up to 370 jobs – subject to consultation with staff affected by the plans.
With Arla’s 1bn-litre fresh milk processing facility in Buckinghamshire nearing completion, the company said it planned to transfer volume to the new dairy at Aylesbury.
It is intended that raw milk will transfer from the Ashby site over a phased period, commencing in October 2013, said an Arla Foods statement.
Milk will continue to be collected as usual from farms supplying the dairy and be delivered to Arla’s other processing sites, said the company on Wednesday (31 July).
But the company may outsource its distribution function to a third-party provider.
Lars Dalsgaard, head of Arla UK’s supply chain, said: “Our new dairy in Aylesbury is on track to be processing milk commercially by the autumn and volumes are ahead of our original expectations.
“In line with our long-term business goal, we intend to maximise the use of our well-invested dairies, complemented by our new cutting edge processing facility in Aylesbury, to meet the requirements of our customers.”
As the most efficient fresh milk processing facility of its kind, the dairy directly supported Arla’s goal – as a 100% farmer-owned co-operative – to deliver the highest possible returns to its farmers.
Similarly, with plans for the site to be carbon neutral, the Aylesbury dairy was key to Arla’s sustainability agenda, said the company’s statement.
Arla UK has a milk pool of 3.2bn litres. It is looking to expand its supply by a further 500m litres by 2017 by recruiting new farmers, as well as through the expansion of its existing supplying farms.