225 Jobs To Go As Muller Dairies Are Closed

Dairy giant Muller is closing two of its dairies in Scotland in a move that will affect 225 jobs and squeeze the incomes of hard-pressed dairy farmers.

Muller Milk & Ingredients said it was shutting the sites on East Kilbride and Aberdeen "both of which are operating well below full utilisation".

It (Other OTC: ITGL - news) will centralise its operations in Scotland at Bellshill in North Lanarkshire where it will invest £15m over the next three years to modernise the dairy and give it the capability "to broaden the range of products it is able to make with milk produced by Scottish farmers".

Muller said all 43 farmers supplying the Aberdeen dairy could continue supplying the business but would have to pay a 1.75p per litre charge for the cost of transporting the milk to Bellshill for processing.

Those who do not wish to continue supplying Muller will not pay the charge and see their contracts terminated after 12 months "giving them time to make alternative arrangements for their milk production", Muller said.

Andrew McInnes, managing director of Muller Milk & Ingredients said: "This announcement is a key step towards building a sustainable, diverse and future focused dairy business in Scotland and the UK.

"Unfortunately the status quo was not sustainable within our Scottish dairy network, with both Aberdeen and East Kilbride dairies operating well-below capacity. By investing in Bellshill we will be better able to optimise the value in the milk we buy from dairy farmers.

"Wherever possible we will offer employees the opportunity to relocate within our network."

The Aberdeen dairy is expected to close in the middle of June while East Kilbride will continue for the next 18-24 months to allow time to transfer production lines across to Bellshill.

The Usdaw union said members are "devastated" by the decision.

Dairy farmers last year carried out high-profile protests over the depressed wholesale price of milk which they say means they is threatening their livelihood.