440 factory jobs to go

AROUND 440 factory jobs will be cut at food manufacturers Dairy Crest and Uniq. Dairy Crest is to close its factory in Yeovil, Somerest by June of this year, resulting in the loss of around 260 jobs.

This follows a decision to 'focus its future activities on the development of branded products, such as Petits Filous, Frubes and Yop'.

A spokeswoman for Dairy Crest said the decision to discontinue supplying Tesco-branded desserts was taken following a strategic review. Dairy Crest lost a contract to supply milk to Tesco and Asda last year but will continue to supply Tesco with other products such as cheese and yoghurt.

Today's announcement comes six months after Yoplait Dairy Crest announced plans to close a similar operation at Enfield, north London, resulting in of 320 job losses. At the time, the company blamed intense price competition among supermarkets for its decision to retreat further from the own-label sector.

Dairy Crest said today it would continue to supply supermarkets with own-label goods in other areas, including milk and cheese.

In a separate announcement, chilled foods supplier Uniq announced that it had won the contract, worth £20m a year, to supply desserts to Tesco.

But Uniq said it could cut around 180 jobs after it lost a contract, worth £12m a year, to supply Sainsbury's with prepared salads worth £12m a year.

Dairy Crest and other dairies including Robert Wiseman, have been involved in a dispute with retailers following a cut in the price of milk last year.