THE butter and skimmed milk sections at Dairy Crest's factory in Chard, Somerset, are to close in early July as part of the dairy's drive to reduce the commodity dairy ingredients part of the business.
Manufacturing will, however, remain at the site, with the group's Severnside super dairy in Stonehouse, Gloucestershire, continuing to supply its ingredients to customers.
"The closure of butter and powder operations at Chard is in line with our strategy to increase our focus on developing our added value and branded businesses," said chief executive Drummond Hall.
"It will significantly reduce our exposure to the commodity ingredients market."
The closure, which Mr Hall did not expect to have any real financial impact on the group's profits, will mean around 80 job losses.
"While we regret these job losses, during the last year significant new butter and powder capacity has come on stream, which has made it increasingly difficult to source the required level of milk at a commercially realistic price," he said.
The company's preliminary results for the. year ended March 31, 2003 will be announced on June 10, 2003.
