Shropshire Star

Can crisis talks save Shropshire dairy plant?

Dairy Crest plans to close its creamery in Shropshire within the next 18 months, putting up to 161 jobs at risk. Today, management and union bosses have their say on the future of the Crudgington site.

Published
The management:
Mark Allen, chief executive of Dairy Crest

The last few months have not been easy for anyone involved in dairying.

Poor spring and summer weather and much higher feed costs have made it particularly difficult for dairy farmers. They need more money for their milk but British consumers aren't feeling that well off either. There is no easy solution.

Mark Allen of Dairy Crest
Mark Allen of Dairy Crest

As one of the biggest milk buyers in the UK, and the only major milk processor still in British ownership, we at Dairy Crest have to balance these different pressures.

Dairy farmers must feel confident that they can make a decent living from their hard work and skill, so that they continue to provide us with the high quality British milk we enjoy today. It is also important for their sons and daughters because they need to believe in the future of dairying.

This is the encouragement they need to be the next generation of farmers. However if the price of milk, cheese and butter increases too much there is a risk that imported dairy products replace those made with British milk, making it harder for the next generation of farmers.

Since we split from the Milk Marketing Board nearly 20 years ago, we at Dairy Crest have worked hard to build successful brands such as Country Life butter, Cathedral City cheese and Frijj milkshakes.

We have ploughed some of the profits from the sales of these brands back into advertising, and we are constantly bringing new products, made from British milk, to market to meet our customers' evolving needs – including our healthier ranges and great tasting and fun ranges for children.

But, sadly, this alone is not enough to balance the intense pressure that our customers and our farmers are facing. To do this we have to become more and more efficient and that has meant making some extremely tough choices – none more so than our recent decision to start consulting with colleagues at our Crudgington creamery about its potential closure in 2014.

This decision to start consulting has not been taken lightly. We have a dedicated group of people at the creamery who have been flexible and have done all we have asked of them.

We have had a project team working for over two years to make sure there are no better alternatives. If the final outcome is that the creamery has to close then we will do all we can to look after the people involved and help them find work with us at other sites around the country or with other businesses.

This commitment to building great brands and keeping our costs to a minimum is a focus for Dairy Crest. We do have to make tough choices but maintaining a thriving British dairy sector is a prize worth fighting for.

The workers: Paul Taylor, Usdaw area organiser

Paul Taylor, Usdaw area organiser
Paul Taylor, Usdaw area organiser

Dairy Crest's proposal to close its Crudgington creamery is devastating news for both its loyal workforce and the local community, but it is a decision Usdaw is determined to challenge and do all we can to reverse.

The company's proposal to consolidate butter and spreads production at its site in Kirkby on Merseyside could lead to the loss of more than 160 local jobs and the closure of a facility that has been a major employer in Shropshire for more than 80 years.

Our members at Crudgington know only too well the competitive pressures the dairy industry faces at the moment, but over the past few years they have worked constructively and flexibly with the company to ensure the creamery has increased efficiency and remained profitable.

For example, just three years ago, the site moved to 24/7 production, as part of a 'New Ways of Working' project agreed between the company and Usdaw.

Dairy Crest says that any closure will not take place until at least 2014 and this is a relatively lengthy notice period we should give the company some credit for.

However, the challenge we face is to use that period to do all we can to safeguard the jobs and livelihoods of our members and their families, many of whom have spent their entire working lives at the creamery.

Formal consultation about the closure plans start with the company this week and will run until at least early December.

As a first step, Usdaw will request full disclosure of all the information we require to enable us to make a detailed examination of Dairy Crest's business case for the closure.

As necessary, we will also call on expert advice and opinion to help us examine that case and to make realistic and constructive counter proposals to avoid job losses and the closure of the creamery.

There can be no guarantee that we will be able to avoid job losses or even save Crudgington from closure and as a responsible union Usdaw would never make such a claim.

However, we will do absolutely everything we can to keep Crudgington open and providing good local jobs for another 80 years. We trust Dairy Crest will enter the consultations in the same spirit.