Dairy distribution jobs may still be saved

Jun 15 2009 By Dan Warburton, The Journal

UNION bosses last night raised hopes for more than 300 jobs facing the axe following the "disastrous" collapse of a major milk processing plant.

Last-ditch talks took place over the weekend in a bid to rescue 329 positions under threat at the Dairy Farmers of Britain’s 19 distribution depots across the North East.

The crisis was sparked by the collapse of the base in Blaydon, with the loss of a further 290 jobs.

Negotiations on a possible management buy-out collapsed late on Friday. But the company’s administrator PriceWaterhouseCooper is still trying to salvage the jobs at the 19 depots connected to the Blaydon dairy. Last night Dennis Gibb, who sits on the National Farmers Union’s regional dairy board, said there was still hope the jobs could be saved.

Mr Gibb, who co-runs Eachwick Red House Farm, near Newcastle, said: "Talks have been going on over the weekend and it’s likely there will be a decision early this week on what will happen to these jobs.

"I should imagine milk that was going in to Blaydon will still be about and the demand for that milk will still be there.

"That means those distribution depots are still important and I would imagine that it would be more economical for milk buyers to take control of existing sites."