Dairy Crest to close two plants in UK

Dairy Crest’s milk plants in Aintree by Liverpool, and outside Cambridge, will close at the end of August with the loss of 500 jobs. The bulk of the customers for doorstep deliveries is in the South East of England where the company’s biggest production site is only running at about 60% capacity, and the Aintree production can be absorbed there and still run at about 86% capacity, a report in the Liverpool Daily Post notes.

Dairy Crest also operates a successful spreads factory in Kirkby, including its brand Clover, and the union has proposed to the company that it transfers the jobs of about 40 delivery drivers at Aintree to Kirkby.

Liquid milk losses at Dairy Crest dairies have had an impact. The company reported a £10.1m loss during the year, compared with a profit of £77.8m a year earlier, even though sales had risen by 2% to £1.63bn. Dairy Crest says its milk business had suffered from declining doorstep sales and inflationary pressures on its costs.  The business is closing two of its five milk plants and has announced plans to try to turn the division around.

Dairy Crest says it will also consider selling the Aintree plant in a bid to save jobs.