British dairy cooperative, Dairy Crest, announced yesterday that a consultation with Proper Welsh Milk’s 31 employees and their representatives regarding the proposed closure of the facility had begun.
Dairy Crest acquired Proper Welsh Milk in March 2013 for £325,000; just hours after the struggling dairy processor went into administration citing cash flow problems.
Since then, however, production volumes have fallen short of expectations, and significant investment is needed to bring the site up to “Dairy Crest standards,” the company said.
“We are disappointed that it has not been possible to make a success of Proper Welsh, but lower sales and higher costs mean it is not possible to operate the site economically,” said Dairy Crest CEO, Mark Allen.
“We will do all we can to help employees at the dairy who may be affected by these proposals. We will also work with customers to offer them alternative packing arrangements and ensure there is no disruption to their service,” said Allen.