Diary Crest closes milk facility

Diary Crest closes milk facility

Dairy Crest has announced plans to close its Proper Welsh Milk dairy just nine months after buying the business, which had fallen into administration.

The UK group said it has started a compulsory 30-day employee consultation with the 31 staff at the site.

The company said it was forced to close the facility because production volumes have "fallen short of expectations" and it would require "significant investment" to bring the site up to Dairy Crest standards.

Mark Allen, Dairy Crest's CEO, said: "We are disappointed that it has not been possible to make a success of Proper Welsh, but lower sales and higher costs mean it is not possible to operate the site economically."

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Consultation starts on the proposed closure of Dairy Crest's Proper Welsh Milk dairy
Dairy Crest is today announcing that it is starting consultation with employees and their representatives regarding the proposed closure of its Proper Welsh Milk dairy in Whitland, Carmarthenshire, which currently employs 31 people.

Proper Welsh Milk was days from closure when Dairy Crest bought the business from the administrators in March this year, with the aim to maintain production and employment and develop new products at the site.  However production volumes have fallen short of expectations and significant investment is needed to bring the site up to Dairy Crest standards.  

Mark Allen, Chief Executive of Dairy Crest, said: "We are disappointed that it has not been possible to make a success of Proper Welsh, but lower sales and higher costs mean it is not possible to operate the site economically.  We will do all we can to help employees at the dairy who may be affected by these proposals.  We will also work with customers to offer them alternative packing arrangements and ensure there is no disruption to their service.

"We remain committed to the Welsh dairy sector and are continuing to recruit farmers and invest in milk collection facilities around Carmarthen."

Original source: Dairy Crest