Snow Brand consolidate

- Last updated on GMT

Related tags: Business

Scandal-tainted Japanese milk processor Snow Brand has confirmed
that, following a merger with two other Japanese farm cooperatives,
it is to close down five plants with the loss of 1,000 jobs.

Scandal-tainted Japanese milk processor Snow Brand has confirmed that, following a merger with two other Japanese farm cooperatives, it is to close down five plants with the loss of 1,000 jobs.

The Tokyo-based company, which itself started life as a cooperative back in 1925, has reached an agreement with the farm groups, to consolidate the three companies current 20 plants and 3,300-strong workforce. Most of the closures and job losses will come from the Snow Brands division.

The joint venture will co-manage the milk businesses and each company will own one third of the overall business.

Snow Brand is still reeling from a food poisoning scandal in June 2000 that left thousands sick around the city of Osaka and a more recent beef labelling scandal.It will now carve out its milk operations, accounting for 40 per cent of its business - and merge that into the milk subsidiaries of the National Federation of Agricultural Cooperative Associations and the National Federation of Dairy Cooperative Associations.

Related topics: Markets

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