Dairy company Müller has announced it is aiming to shut two facilities in Scotland, whilst also investing in a third facility, in order to consolidate the business.
The plan, put forward at the start of a 45 day consultation period, would see Aberdeen and East Kilbride dairies close and a £15m investment over 3 years in Bellshill.
Müller said that both the dairies to be closed are operating below capacity, with 60 per cent of capacity unused in the Aberdeen dairy. The closures would affect more than 200 jobs.
The company said that farmers would have the option to continue supplying, but would have to accept a 1.75ppl transport charge to cover the costs of moving the milk to Bellshill. The other option for the 43 farmers would be to hand in their 12 months’ notice, which Müller said would give them enough time to find an alternative buyer.
Andrew McInnes, Managing Director of Müller Milk & Ingredients said: “We aim to reinvigorate our fresh milk and ingredients business in Scotland and propose to invest to make Bellshill a centre of excellence for dairy, benefitting consumers, customers, employees and farmers.
“It is important to stress that the status quo is just not viable in the medium term. Our Scottish dairies are inefficient and costly which is putting a brake on the innovation and investment needed to stimulate new demand for dairy products.
“We will enter the consultation with an open mind and will rigorously assess the situation and listen to our colleagues before arriving at a decision.”
By: Cattle Site News Desk
Source: The Dairy Site