Milk Link Announces Proposals for Strategic Refocus of Long Life Milk Business

The announcement follows an extensive review of Milk Link’s long life and extended shelf life milk & cream operations to achieve greater manufacturing efficiencies and cost savings and create a platform for sustained business growth and profitability.

15/05/09 Milk Link has announced details of a proposed strategic refocusing of its long life and extended shelf life milk & cream business. Integral to this is the proposal to consolidate all milk production into its Crediton dairy, which has recently benefited from a substantial programme of investment, and close its smaller and less well-invested Kirkcudbright site in Scotland.

The announcement follows an extensive review of Milk Link’s long life and extended shelf life milk & cream operations to achieve greater manufacturing efficiencies and cost savings and create a platform for sustained business growth and profitability.

Milk Link will be entering immediately into a 90 day consultation period with Kirkcudbright’s employee representatives and Union officer.  If the proposal to close the site is confirmed then the 35 million litres of product currently manufactured at Kirkcudbright will be transferred by the end of January to Crediton which will benefit from a further major capital investment programme to upgrade its processing capabilities. This will result in an increased utilisation of milk from Milk Link’s core Member milk field in its value added processing activities and reduce the amount needed from third party sources. It is envisaged that up to 10 new jobs will be created as a result at the dairy.

Neil Kennedy, Milk Link Chief Executive said:

“As a farmer owned co-operative our primary objective must be to deliver sustainable returns to our farmer Members and this is particularly vital at a time of considerable pressure and volatility both in the dairy sector and economy in general.  Our proposal to refocus our long life and extended shelf life milk & cream production into our Crediton dairy will deliver greater efficiencies; business profitability and ultimately allow us to maximise the returns we can make to our Members.

“We remain committed to being a major supplier of high quality and innovative milk drinks. Central to this will be the implementation of a major capital investment programme at Crediton which will increase our production capabilities and efficiencies. Whilst we will also enhance our product development, category management and marketing support in this important sector for us.