Müller Milk & Ingredients (MMI) has confirmed that it is to wind down production at its Foston dairy in Derbyshire as part of its wider £100m ‘Project Darwin’ cost reduction and margin improvement programme launched earlier this year.
The facility is expected to cease operations by the end of the year with processing absorbed by other MMI dairies. The closure will lead to the potential loss of 223 jobs.
The decision follows a 45-day statutory review of the company’s dairy network which was said to have examined factory utilisation against a backdrop of declining consumption of fresh milk and significant changes in retailing.
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.
Patrick Müller, Chief Executive at Müller Milk & Ingredients, commented: “We fully recognise that this decision will be devastating for our employees at Foston, but if we are to have any prospect of building a fresh milk business which is sustainable in the short and longer term, we need to make significant changes to reduce our costs.
“MMI has the best invested network in our industry. But we must adapt quickly to meet the realities of a changing market. Inaction is not an option and would place at risk the future viability of fresh milk, long regarded as a staple of the nation’s fridges.”
The company stated it would provide support for all of those affected over the wind down period, with it hoping to offer staff opportunities to relocate within its network.
MMI’s Project Darwin programme includes a review of every aspect of its operations, logistics, back office and people organisation to simplify the business, reduce costs and “increase customer focus and accountability”.
