Arla creamery closure 'major blow' to Welsh farmers

The Farmers' Union of Wales has stressed the need to maintain processing capacity in Wales following Arla's restructure
The Farmers' Union of Wales has stressed the need to maintain processing capacity in Wales following Arla's restructure

The closure of an Arla creamery plant in Wales is a "major blow" to farmers and the wider dairy industry, according to a farming union.

Part of Arla's £400 million restructure, the closure of the plant in Llandyrnog, Denbighshire will affect more than 90 jobs.

As a consequence of the restructure, Arla’s Welsh supermarket own-brand Welsh cheese will now be processed in Taw valley in Devon.

However, the milk supplying this product will continue to come from farms in Wales.

The Farmers’ Union of Wales (FUW) said the closure is a major blow for employees and their families, and a worry for Welsh milk producers.

It is the latest closure in a number of such occurring throughout Wales over the last decade.

FUW President Glyn Roberts said that ensuring a future for the plant, which has been in business for nearly a century, would now be of "paramount importance" to the area.

FUW Dairy Committee Chairman Dai Miles said: “This most recent closure is of significant concern to the Welsh dairy sector as it functions to further reduce processing capacity in Wales. This may make some producers vulnerable in the future given the large distance between the new processing site and Arla suppliers.”

Arla is set to retain the Llandyrnog site while potential opportunities for other products are explored.

Mr Miles added: “However, if this ultimately means a further loss of processing in Wales, then this means a loss of the economic benefits of processing in Wales and a major worry for dairy producers in the area.”