Dairygold today (Thursday, July 9) confirmed plans to restructure its UK cheese business, launching a sale process for its Leeds operation and a closure consultation on its Crewe facility.

Dairygold’s UK business currently includes a soft cheese facility in Leeds and a cheese formatting facility in Crewe.

Both businesses are operating as usual and Dairygold today said it will continue to work closely with its UK customers across food manufacturing and foodservice channels to maintain key cheesesupply relationships from Ireland.

The decision to overhaul its UK business follows "a strategic review" by Dairygold.

Michael Harte, the co-op's chief executive, said: “Our UK businesses have made a positive contribution to the overall Dairygold business over the years, but the market environment has evolved, and we must ensure that our capital, resources andmanagement focus are directed to the areas that can best support the future strength, sustainability and competitiveness of the co-operative.

"The UK continues to be an important market for our cheesethrough strategic partnerships, while we are also continuing to develop other markets to maximise returns, strengthen overall margins and further reduce the exposure to price volatility".

Dairygold

According to Harte the co-op's focus is going to be "on strengthening our core Irish dairy and agri-business operations".

It also wants to accelerating the "growth" of its health and nutrition platform and other higher-margin, value-added activities which it said "can deliver stronger long-term returns for our members".

Dairygold said it has received interest from "third parties in acquiring its soft cheese business in Leeds" and is now looking at selling the business.

However the co-op said it intends to stop cheese formatting operations at Crewe and has "begun a consultation process with employees around the potential closure of the facility".

Dairygold has said it will now "engage openly" with the workforce in Crewe.

Harte said that its team in Crewe had "shown strong commitment and professionalism, and the site is highly regarded for its high standards.

"We fully recognise the impact this announcement will have on colleagues, their families and the wider community. We are committed to supporting our colleagues throughout this process," he added.