County will milk plant closure opportunity (From Western Telegraph)

County will milk plant closure opportunity

The closure of the loss-making Llangadog creamery is a major blow for its workers, but the decision will safeguard the businesses of dozens of Pembroke-shire milk producers supplying the plant.

Dairy Farmers of Great Britain members say they have been subsidising the inefficient plant since it took over ACC last summer.

Pembrokeshire Jersey breeder, Mike McNamara, who was a Dairy Farmers of Great Britain (DFGB) supplier before the take-over last year, sympathised with the workers. But in financial terms the closure was inevitable, he reasoned.

DFGB took over ACC as a package; some of its plants were profitable and others, like Llangadog, were not, he said.

"When a site is not making any profit the directors have a responsibility to the shareholders, which includes me, the farmer. Yes, it does mean that people will lose their jobs, but the alternative is 5,000 or more farmers losing theirs,'' said Mr McNamara, of Drim Farm, Llawhaden.

Suppliers pay one pence per litre into an investment pool and they want to see that money spent wisely, he said. "I am a realist,'' said Jersey cream producer Mr McNamara, who milks a herd of around 200 Jerseys.

"I can't afford to subsidise the families at Llangadog. That's not to say that I don't feel very sorry for those families, but where there is change there are often opportunities.''

DFGB have other sites in Wales, including a liquid milk plant in Cardiff and a cheese plant in north Wales. Milk from Pembrokeshire will be transported to one of these sites after the closure set for later this year.

The group said the closure decision, announced on Wednesday, would enhance the long-term profitability of the business.

It said it was committed to its remaining production facilities and farmer members in Wales. It would be making every effort to minimise disruption to any customers affected by the closure.