Müller Milk & Ingredients (MMI) has announced that it will close its Foston dairy in Derbyshire by the end of 2019.
The decision was taken after a 45-day statutory review of the company’s dairy network in the UK.
The review examined factory utilisation against a backdrop of declining consumption of fresh milk and significant changes in retailing, the company said.
Risk Factors
The risk factors for the Foston dairy include its size and inability to absorb significant production volume from other dairies, the current level of utilisation, and its geographical position relative to customers.
Commenting on the decision, chief executive at Müller Milk & Ingredients, Patrick Müller, said, "We fully recognise that this decision will be devastating for our employees at Foston, but if we are to have any prospect of building a fresh milk business which is sustainable in the short and longer term, we need to make significant changes to reduce our costs."
Jobs At Risk
The closing of the plant will threaten 223 jobs, the company said.
The company has conducted consultation sessions with employees, unions, and other employee representatives, and has committed to providing support for all of those affected by the move.
"Wherever possible, we will offer our colleagues opportunities to relocate within our network, and we will do everything we possibly can to support those who do not wish to relocate or for whom there are no roles," Müller explained.
Project Darwin
The dairy network review was part of MMI’s Project Darwin programme, which aims to secure a sustainable future for the business through cost reduction and margin improvement.
Most farmers associated with the dairy company will be unaffected as milk processing will be transferred to other MMI dairies.
However, the company will discuss future options with dairy farmers who are located far away from other MMI dairies.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
