Farmer owned UK diary company Dairy Farmers of Britain today (Wednesday) announced that it is to end production at its Llangadog creamery in South Wales.

“The creamery, which was bought by DFB as part of the acquisition of Associated Co-operative Creameries from the Co-operative Group in August 2004, has been under review since acquisition due to its continued poor financial performance,” it said. “DFB believes this commercial consideration is being taken in the best interests of the DFB business and its farmer members.”

“This decision follows an industry wide consolidation and rationalisation process to take cost out of the supply chain in order to benefit customers, farmer members and shareholders,” it said. The site will close later this year, with the loss of around 200 jobs.

“This decision follows a full review of the Llangadog business and has been taken as a requirement to improve the overall business efficiency for our shareholders, the farmer members,” said chief executive Malcolm Smith. “Our members will be pleased to hear the rest of the business is performing very satisfactorily and this decision will enhance the long-term profitability of the business.”

“DFB is committed to its remaining production facilities in Wales and its farmer members in Wales, and we will be making every effort to minimise disruption to any customers directly or indirectly affected by the closure,” he said.