Dairy co-operative Arla has proposed a permanent shut down of its Cornish creamery due to declining production volumes.
Arla Foods' Trevarrian Creamery, located near Newquay in Cornwall, currently employs 37 people.
The site produces brie, camembert and other cheeses predominantly under local brands or own-label retailer brands.
But the loss of 'key own-label cheese contracts' and the impact of the pandemic has meant that the site is no longer financially viable.
The co-operative has launched a consultation with the creamery's employees on the proposal to shut it down.
Alison Rance, vice president of production at Arla UK, said a drop in production volumes for the site meant it was 'no longer financial responsible'.
She said the co-op had explored multiple options including additional volume opportunities for the site, but there was now 'no other alternative'.
“We recognise that this will be a difficult time for all those colleagues impacted by these proposals and our priority right now is to support them to manage this situation," she said.
"If the proposal goes ahead we are committed to supporting colleagues at this difficult time and will do everything we can to support them in their search for suitable alternative employment."
Arla said that those farmer suppliers who supplied milk to the creamery would have their volumes redirected to the co-op's Taw Valley and Westbury sites.