Müller Milk & Ingredients (MMI) has confirmed that it is to wind down production at its Foston dairy in Derbyshire with the potential loss of 223 permanent posts. The facility is likely to cease operations by the end of the year with processing absorbed by other MMI dairies.
The decision follows a 45 day statutory review of the company’s dairy network which examined factory utilisation against a backdrop of declining consumption of fresh milk and significant changes in retailing.
During the review, Foston dairy was identified to be most at risk due to its size and inability to absorb significant production volume from other dairies, its current level of utilisation and its geographical position relative to customers.
The consultation included discussions with employees, unions and other employee representatives and the company has committed to providing support for all of those affected over the wind down period.
Most dairy farmers who supply Foston will be unaffected with milk switched to be processed at other dairies, but the company will be in direct contact in the next week with a small number of farmers who are located in areas not close to other dairies in the MMI network, to discuss and consider future options for their milk.
