Arla Foods, a global dairy cooperative, has confirmed the closure of its Settle creamery in North Yorkshire, England, as part of its plan to consolidate operations. The decision to shift production to the Lockerbie site in Scotland has sparked strong opposition from unions and local stakeholders. Despite alternative proposals, including moving to a greenfield location, the company is proceeding with its plan, which will result in the loss of 130 jobs.
Arla Foods, a leading global dairy cooperative, has officially confirmed the closure of its Settle creamery in North Yorkshire, England, despite growing opposition from unions and the local community. The decision to move production to its Lockerbie facility in Scotland, as part of a broader strategy to consolidate operations, has sparked significant backlash from the GMB Union and other stakeholders.
The closure of the Settle creamery will result in the loss of 130 skilled jobs, a blow to both the workforce and the surrounding rural community. Despite efforts by the GMB Union to propose alternative solutions – such as relocating production to a greenfield site or a shared production facility – Arla has opted to proceed with its plan to transfer operations to Lockerbie. The company’s decision is part of its ongoing efforts to strengthen its manufacturing network in the UK, particularly within its Scottish facilities, which are expected to benefit from increased investment and capacity.
Deanne Ferguson, a representative from the GMB Union, expressed deep disappointment over Arla’s stance. In a statement, Ferguson emphasized the union’s commitment to fighting for the Settle workers’ jobs and announced plans to ballot union members for potential strike action. “We remain resolute in our efforts to secure the future of Settle and its workers,” she said, urging Arla to maintain open dialogue for further negotiations.
Arla Foods, headquartered in Denmark, has been a significant player in the global dairy industry, known for its commitment to quality dairy products and its strong presence across Europe. The company’s spokesperson reiterated that Arla remains dedicated to supporting its employees in Yorkshire and beyond, despite the controversial move. However, the closure of the Settle creamery marks a shift in the company’s operational priorities and raises questions about the future of rural manufacturing hubs in the region.
The decision to consolidate production into larger facilities is not unique to Arla, as many global corporations have been optimizing their manufacturing networks in recent years to improve efficiency and reduce costs. However, the impact of such closures on local economies and job markets has been a contentious issue, particularly in regions that rely heavily on industries like dairy production.
The Settle creamery closure is just one part of a wider trend in the UK dairy sector, where companies are consolidating operations in an attempt to remain competitive in a rapidly changing market. Arla’s move is expected to have broader implications for the dairy industry, potentially influencing how similar companies approach cost-saving strategies and workforce management.
As the closure date draws closer, the GMB Union and other concerned parties continue to push for a solution that would secure the future of the Settle creamery and its workforce. The outcome of this dispute may set a precedent for how the dairy sector navigates similar challenges in the years to come.
