As part of its ongoing strategic development, dairy cooperative Dale Farm is to consider restructuring part of its business in Great Britain, specifically its Kendal, Cumbria (England) and Rowan Glen, NewtonStewart (Scotland) sites.
This restructure could result in a proposal to cease operations at these two facilities. Dale Farm employs over 1,300 people across 10 locations around the UK.
The business employs around 200 staff across its sites in Kendal and Rowan Glen, where it produces a range of dairy products outside its core product portfolio, including desserts, yogurts and cottage cheese, for supply into the UK-wide market.
Dale Farm outlook
In a statement, Dale Farm said that it recognises and appreciates the loyalty, hard work and commitment from employees at both sites.
This consideration has apparently been prompted by a thorough review of Dale Farm’s operations, examining, which elements of the business are sustainable for the future.
These two manufacturing sites compete in a market characterised by excess capacity and declining demand for their primary products, according to the co-op.
Dale Farm added that aside from the market challenges, the sites are experiencing significant inflation and require major investment in order to remain viable.
The co-op is now entering into a period of consultation with those impacted.
Existing arrangements with Dale Farm’s GB farmer members will not be affected. The cooperative will continue to collect and utilise their milk and they will continue to be members of the cooperative.
Dale Farm has said that it will work closely with all employees and representatives, providing ongoing support throughout this process.
A spokesperson confirmed that the possible restructuring of the business in GB “will not impact” on Dale Farm’s Northern Ireland operations.