Farmers warn a dairy closure is the latest in a series of moves by big companies to buy and then "mothball" small milk processing plants.

Arla Foods UK announced on Tuesday production and processing at its dairy in Sheffield Park, near Uckfield, would end in July, with a loss of 250 jobs.

At least three other Sussex dairies have closed in the past three years after being bought up by giant dairy firms.

Dairies act as the middleman between farmers and supermarkets. They buy raw milk from farmers, process and bottle it and then sell it on to retailers.

Farmers have protested for some time that the price they receive for their milk does not even cover their production costs.

Pete Parkes, regional organiser for Farmers for Action (FFA), is part of the campaign group for higher prices. He said big companies buy up the small local plants partly as a way of streamlining their business and partly to stop competitors buying the plants.

Steve Hook, 40, of Longley Farm, Hailsham, is chairman of a small organic dairy farmer's co-operative whose efforts to buy into a milk processing plant for three years has been thwarted by the big companies.

Mr Hook said: "It's a way of maximising their position in the marketplace. Medium sized plants across the country are being bought up and mothballed.

"This means the milk is travelling further and further to be processed. Fuel prices are also going up so the cost of transport increases and farmers fear this extra cost will be dumped on us."

Arla is likely to retain 80 workers in its distribution section at Sheffield Park.

Dairy Crest bought Coombe Farm Dairies in 2004 and closed the bottling and processing plant. Distribution moved to Dairy Crest sites in Eastbourne, Brighton and Worthing. Jeff Trunkfield, regional vice-chairman of the National Farmers Union, said Bevendean Dairy and one other Sussex dairy had also been bought up and sold in the past three years.

Arla said it was closing the Sheffield Park Dairy because its processing capacity was no longer required.

Thursday, January 12, 2006