Dairy Farmers of Britain (DFB) has announced plans to ‘streamline’ its business with the closure of two dairies and 640 job cuts.

The proposed restructuring will involve closure of the company’s Fole dairy in Staffordshire and Portsmouth dairy in Hampshire – two sites that DFB says are “not delivering acceptable returns”.

In a bid to provide a more “cost effective management structure”, the company said it proposes the rationalisation of its Portsmouth, Cheshunt, Leeds and Lincoln distribution depots.

The reduction in workforce will take place at the company’s offices in Nantwich and Blaydon.

Andrew Cooksey, chief executive officer said: “Dairy Farmers of Britain’s overall business performance has been hampered by continuing to operate with the current structure. This difficult but decisive action safeguards the business moving forward and is therefore in the best interests of our wider business, our members and our employees.”

DFB said that despite investment in the business, the company has not delivered acceptable returns within its liquid milk division.

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“We recognise that this announcement impacts upon our employees at a difficult time and we will be working closely with employees, their representatives and local employment agencies to secure alternative employment for as many members of staff as possible,” the company said in a statement.

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