Up 80 jobs are under threat across Saputo Dairy UK’s business, with at least 60 at risk of redundancy at the manufacturer’s Davidstow, Cornwall creamery, after the cheese maker announced plans to exit the infant formula market.
The dairy manufacturer has proposed it will stop manufacturing demineralised whey (D90) and galacto-oligosaccharides (GOS) – ingredients for the infant formula market – and return to producing sweet whey powder.
Should the proposals go through, at least 60 roles at the manufacturer’s Davidstow creamery will be put at risk if redundancy, with a further 20 expected to be hit in other parts of the business.
No longer in its best interests
A spokesman for the business said that since the decision was made to produce functional ingredients in 2013, demographic shifts and changes in demand for different whey formats meant it was no longer in its best interest to continue servicing the infant formula market.
“We will consequently be entering into a period of consultation with a group of employees regarding these proposed changes,” the spokesman added.
Saputo Dairy UK said that the proposal would have no impact on its supplying farms or its cheese production – Davidstow creamery is also home to the Cathedral City cheese brand and is the largest mature cheddar plant in the world.
‘Difficult, but decisive, actions’
“Market conditions are such that we are having to take difficult, but decisive, actions to simplify the business and introduce meaningful efficiencies to ensure we are best placed for the future,” the spokesman concluded.
“We will ensure that all employees who may be impacted by this proposal are well supported.”
Meanwhile, St Austell Brewery has entered into consultation with staff over a possible reduction of 40 roles across the business, as looming rises in National Insurance threaten to put the business under financial strain.
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