Arla Foods to shed 200 jobs with closure of dairy

FARMER-OWNED Arla Foods is set to close its Hatfield Peverel dairy with a loss of up to 200 jobs.

The firm, which has its UK head office in Leeds and is co-operative owned by 12,700 dairy farmers worldwide, said it will end processing at the Essex site in July 2016.

Hatfield Peverel currently processes fresh milk for Arla Cravendale and Arla Big Milk, in addition to own-brand fresh and organic milk for retailers. The majority of the site’s operations will be moved to the company’s Aylesbury site, which has received £150m investment since opening in 2014.

Following consultation, up to 200 jobs will be cut or relocated, Arla said. An additional 32 positions could be affected by a proposed outsourcing of delivery to Bidvest Logistics.

Dan Kolding, senior vice president of supply chain at Arla Foods UK said the proposed changes and further development of its Aylesbury site is helping it provide better returns for its farmers.

He said: “We are entering into full consultation with all colleagues affected by both proposals, and their trade union representatives.

“We are committed to supporting affected colleagues at this difficult time and will do everything we can to support them in their search for suitable alternative employment, either within Arla or elsewhere.”

Last year, Arla Foods saw its global revenue fall 3.3% to £8bn, while EBITDA climbed 10.7% to €754m. Increased costs saw net profit down 7.8% to £295m. Despite the fall in international turnover, Arla’s UK sales rose 4.5% to £2.3bn .

The firm’s UK business currently employs around 3,500 staff between its dairies, distribution centres and head office.