Dairy farmers supplying a Scottish creamery have been dealt a blow after First Milk announced plans to close the site.
The dairy cooperative put Campbeltown and Arran creameries up for sale in April last year as they were 'not core to its business strategy'.
Despite efforts over the last twelve months, it has not been possible to conclude the sale of the Arran site.
As a result, First Milk has commenced employee consultation about its proposed intention to close the creamery.
The co-op is also in discussions with farmers and the Scottish government about scaling down the Campbeltown creamery.
However, First Milk said it is 'hopeful' that the discussions will conclude with the creamery being owned by local farmers.
It is envisaged that the farmers will form a new co-operative who will operate the creamery independently of First Milk.
Responding to the plans, NFU Scotland said it is 'extremely disappointing' for the farmers who have had a 'cloud of doubt' for over a year.
Shelagh Hancock, Chief Executive of First Milk, also admitted the news is 'deeply disappointing'
However, she said: “We remain hopeful that it will be possible to secure the future of the Campbeltown creamery in the ownership of the local farmers and the proposed changes that we have announced today will help with that.
“We fully appreciate that these developments have significant consequences for colleagues at the creameries and the local community.
“But it is important that we act in the best interest of the wider business and our farmer members and continue with the solid progress we have made in strengthening and developing First Milk.”
Ms Hancock added: “We regret the impact this decision will have on our colleagues and are committed to treating those affected fairly and with consideration during this difficult time.”
