Dairy Crest closes sites but milk sellers are reassured
Dairy Crest closes sites but milk sellers are reassured
By Robert Davies
Wales correspondent
DAIRY Crest, the UKs biggest milk buyer, is ceasing operations on five sites in England and Wales.
Tom Jones, one of the companys two farmer directors, said that rationalisation was inevitable following the acquisition of Unigates dairy and cheese businesses last July.
"It is very tough for those who will lose their jobs, but we have a duty to shareholders and all the producers who supply us to develop a strong and efficient milk processing company.
"I can reassure all farmers that they will not be affected adversely by the changes, and in the long term they will benefit financially from improved efficiency."
Mr Jones, who farms on Anglesey, insisted that farmers transport costs would not rise. But Robert Voyle, chairman of the Farmers Union of Waless milk committee, claimed that moving Welsh milk for processing to Gloucestershire rather than Cardiff would inevitably lead to higher charges.
"The closure of the cheese packaging facility in Carmarthen and the liquid milk plant in Cardiff, with the loss of 550 jobs, is a kick in the teeth for the Welsh dairy industry," he insisted.
However, Dairy Crest will create 170 new jobs at its cheese pre-pack operation at Maelor in north-east Wales.
Liquid milk sites at Thornbury in Gloucestershire and Kiddlington in Oxfordshire will result in 330 job losses. Changes in blue cheese production will cause the closure of the Harby plant in Leicestershire and consolidation at Hartington in Derbyshire, with a net loss of 100 jobs.
Another 130 employees will go at Crudgington, Shropshire and Chard in Somerset as butter and milk powder production is reconfigured.
"Dairy Crest intends to set new industry standards for efficiency, quality and service across its business," said John Houliston, chief executive.
A total investment of £39m in a second "super dairy" at Severnside, Gloucestershire, to compliment the £15m facilities at Chadwell Heath in London would enable the company to become a long-term market leader, he added.
• Dairy Crest also recently announced it would pay 0.5p/litre more for farm milk for February only, though it added that it was in "active discussions" with major customers.
It said the one-off bonus was an "indication of its desire" to help dairy farmers.
However, farmers are not impressed, judging by the wave of recent depot blockades following the announcement.
The Milk Group has also announced a similar increase, though this rise is ongoing and backdated to Jan 1.
"The price rise largely results from the successful outcome of a variety of market-related trading activities in recent weeks," says chief executive Robert Audas.
These include milk auctions, which, although only accounting for a small volume, allowed the group to take advantage of spot prices forced up into the high 20ps/litre by the milk shortage.