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Dairy closes with 279 job losses | Dairy closes with 279 job losses |
(about 3 hours later) | |
Receivers have confirmed 279 jobs are to be lost after failing to reach a deal to save a south Wales dairy. | Receivers have confirmed 279 jobs are to be lost after failing to reach a deal to save a south Wales dairy. |
The Dairy Farmers of Britain (DFB) is closing its Bridgend operation on Friday, a week after the UK-wide co-operative went into receivership. | The Dairy Farmers of Britain (DFB) is closing its Bridgend operation on Friday, a week after the UK-wide co-operative went into receivership. |
PriceWaterhouseCoopers said the decision was "unavoidable" and said there was a lack of interested buyers. | PriceWaterhouseCoopers said the decision was "unavoidable" and said there was a lack of interested buyers. |
A deal to safeguard 170 jobs at DFB's Denbighshire plant, used by 300 farmers, was announced on Thursday. | A deal to safeguard 170 jobs at DFB's Denbighshire plant, used by 300 farmers, was announced on Thursday. |
DFB went into receivership last week, putting 2,000 UK jobs at risk. | DFB went into receivership last week, putting 2,000 UK jobs at risk. |
The agricultural cooperative has 1,800 member farmers who supply over one billion litres of milk a year, and is responsible for 10% of UK milk production. | The agricultural cooperative has 1,800 member farmers who supply over one billion litres of milk a year, and is responsible for 10% of UK milk production. |
All our members are understandably devastated John Gorle, Usdaw union | |
The Bridgend site, acquired in 2006, was capable of processing 200 million litres of milk each year, supplied by farms across south Wales. | The Bridgend site, acquired in 2006, was capable of processing 200 million litres of milk each year, supplied by farms across south Wales. |
The receivers had tried to find a buyer for the factory. Dairy products firm Milk Link bought the Llandyrnog plant for an undisclosed sum. | The receivers had tried to find a buyer for the factory. Dairy products firm Milk Link bought the Llandyrnog plant for an undisclosed sum. |
'Concern' | 'Concern' |
Stephen Oldfield, of receivers PriceWaterhouseCoopers, and manager of DFB, blamed continuing losses at Bridgend and the lack of a credible funded buyer. | Stephen Oldfield, of receivers PriceWaterhouseCoopers, and manager of DFB, blamed continuing losses at Bridgend and the lack of a credible funded buyer. |
He said: "There is, of course, much concern given the number of jobs involved." He said the business was making "significant losses" after key customers pulled their support for the dairy. | He said: "There is, of course, much concern given the number of jobs involved." He said the business was making "significant losses" after key customers pulled their support for the dairy. |
It was then being run on a "margin-managed" basis, meaning losses were being paid for out of farmers' milk cheques. | It was then being run on a "margin-managed" basis, meaning losses were being paid for out of farmers' milk cheques. |
"Given the farmers have already lost significant sums, we cannot expect them to continue to fund the liquid division's losses," he said. | "Given the farmers have already lost significant sums, we cannot expect them to continue to fund the liquid division's losses," he said. |
The Bridgend closure follows the closure of DFB's Lincoln dairy, with the loss of 127 staff, earlier this week, and another 200 at Blaydon, Tyneside. | |
John Gorle, Usdaw national officer, said: "We are again appalled and frustrated at the receivers' decision to close the Bridgend and Blaydon dairies as well as the Lincoln site without consultation. | |
"All our members are understandably devastated." | |
He said they wanted urgent talks with the receivers, with the announcement made without the 90 days consultation. |