Dairygold Co-operative Society Limited announced that it is exploring the sale of its soft-cheese business in Leeds and the closure of its cheese formatting business in Crewe, Cheshire, England.
The proposed changes to Dairygold’s UK business operations come following a strategic review.
The co-op said the decision reflects its ongoing focus on its core dairy, agri and health and nutrition businesses. It added that the move will also prioritise capital and resources towards the areas that deliver the greatest long-term value for the co-op.
Dairygold has already received interest from third parties in acquiring its soft cheese business in Leeds and is exploring a sale process.
The facility in Crewe, which formats cheddar, employs approximately 90 people. The co-op said it will engage openly with employees throughout the consultation process, give genuine consideration to any alternatives or suggestions put forward and ensure that all affected employees are supported throughout the process.
Contribution
Dairygold chief executive Michael Harte said: “Our UK businesses have made a positive contribution to the overall Dairygold business over the years, but the market environment has evolved and we must ensure that our capital, resources and management focus are directed to the areas that can best support the future strength, sustainability and competitiveness of the co-operative.
“The UK continues to be an important market for our cheese through strategic partnerships, while we are also continuing to develop other markets to maximise returns, strengthen overall margins and further reduce the exposure to price volatility.”
Dairygold chair Pat Clancy said: “Dairygold continues to be committed to managing the wider business in the best interests of our members, colleagues, customers and stakeholders.”
SHARING OPTIONS