The company revealed its decision today (March 7) after reviewing its processing requirements across the UK.
Arla’s Aylesbury site, which has the capacity to process 1bn litres a year after significant recent investment, will take on the majority of Hatfield Peverel’s processing.
Smaller volumes of milk will be delivered to other Arla fresh milk dairies dependent on customer requirements.
Full consultation with all workers
Arla Foods UK senior vice president, supply chain, Dan Kolding, said the business was entering into full consultation with all workers affected by both proposals, and their trade union representatives.
“We are committed to supporting affected colleagues at this difficult time and will do everything we can to support them in their search for suitable alternative employment, either within Arla or elsewhere,” said Kolding.
“As a farmer-owned dairy company, our mission is to return the highest value for our farmers’ milk, creating opportunities for growth. The development of Aylesbury is helping us to deliver this vision in the UK, as the dairy approaches capacity.”
The Hatfield Peverel dairy is slated for closure by the end of July 2016.
The plan to relocate production to Aylesbury followed the investment of more than £150M in its modern fresh milk facility.
‘This difficult time’
“We are committed to supporting affected colleagues at this difficult time and will do everything we can to support them in their search for suitable alternative employment, either within Arla or elsewhere.”
Dan Kolding, Arla Foods UK
‘Arla’s significant growth plans’
“It is the world’s largest dairy operation of its kind and was built to support Arla’s long-term strategy to increase the volume of milk being processed in the UK and support Arla’s significant growth plans for its largest market,” said Arla.
Due to the proposed closure and following a review of the outbound logistics operations operated from Hatfield Peverel, Arla also recommended, what it claimed was, an improved model that would outsource this operation to the distribution and supply chain services company Bidvest Logistics.
If the logistics plan were implemented, it was likely about 32 employees would be transferred to Bidvest Logistics through a phased process. That would bring the potential number of people impacted by the changes at the Hatfield Peverel dairy to about 230.