Dairygold to close Crewe facility and explore sale of Leeds business

The firm has begun a consultation process with employees around the potential closure of the facility in Crewe, which currently employs around 90 people.

Dairygold Chief Executive Michael Harte

Dairygold has announced plans to cease cheese formatting operations at its site in Crewe and is in talks to sell off its soft cheese business in Leeds.

The Munster-headquartered firm has begun a consultation process with employees around the potential closure of the facility in Crewe, which currently employs around 90 people.

Crewe factory closure

The facility manufactures grated, shredded, diced and sliced cheese for the UK food manufacturing and foodservice sectors.

Dairygold said it operates in a highly competitive and volatile market with low margins, combined with significant working capital and ongoing investment requirements, raising serious challenges for its long-term viability.

The changes follow a strategic review of Dairygold's UK operations as the co-op seeks to focus capital and resources on its core dairy, agri and health and nutrition businesses.

A spokesperson said the company will engage openly with employees throughout the consultation process and “give genuine consideration” to any alternatives or suggestions put forward and ensure that all affected employees are supported throughout the process.

"Exploring a sale process"

The firm’s facility in Leeds, Yorkshire, employs around 40 people and sources its key ingredients within the UK marketplace. The factory produces a range of soft cheeses for the UK food manufacturing and foodservice sectors.

Dairygold said it had received interest from third parties in acquiring the Leeds business and is exploring a sale process.

In the meantime, both businesses will continue to operate as usual, and Dairygold will continue to work closely with its UK customers across food manufacturing and foodservice channels to maintain key cheese supply relationships from Ireland.

Dairygold Chief Executive Michael Harte said: “Our UK businesses have made a positive contribution to the overall Dairygold Business over the years, but the market environment has evolved, and we must ensure that our capital, resources and management focus are directed to the areas that can best support the future strength, sustainability and competitiveness of the co-operative.

“The UK continues to be an important market for our cheese through strategic partnerships, while we are also continuing to develop other markets to maximise returns, strengthen overall margins and further reduce the exposure to price volatility.

“Our focus is on strengthening our core Irish dairy and agri-business operations, while accelerating the growth of our health and nutrition platform and other higher-margin, value-added activities that can deliver stronger long-term returns for our members.

“In relation to our Crewe facility, our teams have shown strong commitment and professionalism, and the site is highly regarded for its high standards. We fully recognise the impact this announcement will have on colleagues, their families and the wider community. We are committed to supporting our colleagues throughout this process.” 

Dairygold Chairperson Pat Clancy added: “Today’s announcement follows a detailed strategic review of our UK Business operations.

Dairygold continues to be committed to managing the wider business in the best interests of our Members, colleagues, customers and stakeholders.”