Muller Milk & Ingredients will be shutting down production activities at its Foston dairy located in Derbyshire as an effort to cut down costs, announced the company on Monday.
The plant will likely halt operations by the end of this year and may lead to loss of around 223 jobs, said the company.
The move comes in because of a decline fresh milk consumption and majot alterations in retailing.
The USDAW (Union of Shop, Distributive and Allied Workers) said that the decision was a shocking blow for the company’s workforce.
During one of the consultation periods, Muller said that Foston was identified to stand at highest risk because of its size as well inability to take up major production capacity from the other dairies.
According to Patrick Muller, CEO, Muller Milk & Ingredients, the company recognised that such a move would be shocking for its employees working at Foston. However, if it wants to build a good milk business that’s sustainable in the short and long term then it is important to make such vital changes to lower the company’s costs, he added.
A spokesman said that the USDAW has agreed to offer relocation support to the employees who have alternative roles in the company.
Notably, Foston dairy, which was previously owned by the firm Dairy Crest, was acquired by Muller in the year 2015.