A dairy is closing with the loss of 250 jobs in an area which has already suffered 500 job losses in the past two years.

Dairy processor Arla Foods announced yesterday that the production and processing units of its plant at Sheffield Park, near Uckfield, are likely to close in July.

The closure is a blow to a rural area of Sussex where two other major employers have shut down since 2004.

Ian Whiting, a Works Council representative at Arla Foods, has been at the dairy for 32 years. He said: "The biggest concern here now is people getting other jobs.

"There are very few big employers left in the area and there are a lot of people here with families. Gatwick is going to be the only large employer."

Arla Foods UK is part of an international company. It said the units were closing because the dairy's processing capacity was bigger than required.

The Sheffield Park plant was mainly used for processing milk for Arla's Express Foodservice, which supplied dairy products to clients such as high street coffee chains.

Last year the company sold off Express Foodservice to rival firm Dairy Crest, which has its own processing plants.

Isobel Bretherton, of the National Farmers Union, said: "Farmers are bitterly disappointed this plant is closing, after considerable investment, as a result of yet more streamlining in the dairy industry. This is quite apart from the fact that farmers are still paid milk prices below the cost of production."

Sharon Davy, Lewes District councillor for Chailey and Wivelsfield, said: "It is a problem in rural areas that employers are few and far between. It will be difficult to make up a loss of 250 jobs."

The Sheffield Park dairy will still be used as a distribution point for raw milk from Sussex farmers. About 80 staff are expected to be kept on.

Milk is to be driven to North London and Essex dairies for processing and then back to be distributed across the South East. The closure is subject to consultation with staff and unions but is the most likely outcome.

A spokeswoman for Arla said: "The dairy market is very competitive and we are seeing rationalisation throughout the industry. There has been a long-term decline in household milk buying."

Last year the Merrydown Cider brewery, near Heathfield, and Grampian Foods' chicken factory, at Five Ash Down, Uckfield, closed their doors.

Merrydown had been brewing in Sussex since 1946 but was down to 35 staff by the time it shut in November 2004. Grampian closed in January 2005 with 485 jobs lost.

However, Mark Froud, of business analysts Sussex Enterprise, said the closures did not indicate a downturn in Sussex's rural economy.

He said: "We have had a couple of closures in the past two years but other companies have opened as well."

250 jobs are lost in dairy closure A dairy is closing with the loss of 250 jobs in an area which has already suffered 500 job losses in the past two years.

Dairy processor Arla Foods announced yesterday that the production and processing units of its plant at Sheffield Park, near Uckfield, are likely to close in July.

The closure is a blow to a rural area of Sussex where two other major employers have shut down since 2004.

Ian Whiting, a Works Council representative at Arla Foods, has been at the dairy for 32 years. He said: "The biggest concern here now is people getting other jobs.

"There are very few big employers left in the area and there are a lot of people here with families. Gatwick is going to be the only large employer."

Arla Foods UK is part of an international company. It said the units were closing because the dairy's processing capacity was bigger than required.

The Sheffield Park plant was mainly used for processing milk for Arla's Express Foodservice, which supplied dairy products to clients such as high street coffee chains.

Last year the company sold off Express Foodservice to rival firm Dairy Crest, which has its own processing plants.

Isobel Bretherton, of the National Farmers Union, said: "Farmers are bitterly disappointed this plant is closing, after considerable investment, as a result of yet more streamlining in the dairy industry. This is quite apart from the fact that farmers are still paid milk prices below the cost of production."

Sharon Davy, Lewes District councillor for Chailey and Wivelsfield, said: "It is a problem in rural areas that employers are few and far between. It will be difficult to make up a loss of 250 jobs."

The Sheffield Park dairy will still be used as a distribution point for raw milk from Sussex farmers. About 80 staff are expected to be kept on.

Milk is to be driven to North London and Essex dairies for processing and then back to be distributed across the South East. The closure is subject to consultation with staff and unions but is the most likely outcome.

A spokeswoman for Arla said: "The dairy market is very competitive and we are seeing rationalisation throughout the industry. There has been a long-term decline in household milk buying."

Last year the Merrydown Cider brewery, near Heathfield, and Grampian Foods' chicken factory, at Five Ash Down, Uckfield, closed their doors.

Merrydown had been brewing in Sussex since 1946 but was down to 35 staff by the time it shut in November 2004. Grampian closed in January 2005 with 485 jobs lost.

However, Mark Froud, of business analysts Sussex Enterprise, said the closures did not indicate a downturn in Sussex's rural economy.

He said: "We have had a couple of closures in the past two years but other companies have opened as well."