Dairy co-op Dale Farm may close two UK sites

Milk processing sites in England and Scotland operated by Northern Ireland-based dairy co-op Dale Farm could close, but dairy farmers supplying these plants have been assured that their contracts will be unaffected.

The company, previously known as United Dairy Farmers, is restructuring the Great Britain arm of its operations and that could mean the closure of its sites at Kendal, Cumbria, and Rowan Glen, Newton Stewart.

Dale Farm said that these two manufacturing sites, where it produces desserts, yogurts and cottage cheese, “compete in a market characterised by excess capacity and declining demand’’.

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Aside from the market challenges, the sites are experiencing significant inflation and require major investment to remain viable, it added.

“This consideration has been prompted by a thorough review of Dale Farm’s operations, examining which elements of the business are sustainable for the future,’’ it said.

It has 10 operating sites across the UK.

Around 200 staff are employed at the Kendal and Rowan Glen sites.

In a statement, Dale Farm said it recognised and appreciated the “loyalty, hard work and commitment’’ from employees at both sites.

It is now entering into a period of consultation with the people who are affected.

“Dale Farm will work closely with all employees and representatives, providing ongoing support throughout this process,’’ it said.

But there were reassurances for its farmer suppliers. “Existing arrangements with Dale Farm’s GB farmer members will not be affected,’’ it said.

“The co-operative will continue to collect and utilise their milk and they will continue to be members of the Dale Farm co-operative.’’

Dale Farm is supplied by milk from 1,300 dairy farmers across the UK.