The Proper Welsh Milk Dairy in Whitland is under the threat of closure with the possible loss of 31 jobs.

Dairy Crest today (Monday) announced that it is starting consultation with employees and their representatives regarding the proposed closure the dairy.

Proper Welsh Milk was days from closure when Dairy Crest bought the business from the administrators in March this year, with the aim to maintain production and employment and develop new products at the site.

However, in a statement issued today, the company said that production volumes have fallen short of expectations and significant investment is needed to bring the site up to Dairy Crest standards.

Mark Allen, Chief Executive of Dairy Crest, said: “We are disappointed that it has not been possible to make a success of Proper Welsh, but lower sales and higher costs mean it is not possible to operate the site economically.

"We will do all we can to help employees at the dairy who may be affected by these proposals. We will also work with customers to offer them alternative packing arrangements and ensure there is no disruption to their service.

“We remain committed to the Welsh dairy sector and are continuing to recruit farmers and invest in milk collection facilities around Carmarthen.”

South Pembrokeshire MP Simon Hart, said: "I am desperately sad that dairy crest were unable to make this venture work.

“The employees have worked incredibly hard and deserve a better outcome than this. I will do anything I can to help them find alternative work in the area and urge them to get in touch"