News

Fears for dairy's future

FEARS were expressed this week over the future of 140 jobs at the Rachel’s Organic dairy, the largest private sector employer in Aberystwyth, which is understood to be on the market for £20m.

The company’s American owner Dean Foods is reported to have hired investment bankers NM Rothschild to examine various strategic options for Rachel’s, including the possible sale of the company, and concerns are growing that any new buyer would want to relocate production to a more central location, leaving many staff redundant.

Dean Foods has been hit by intense competition in the milk market, with net income dropping from $83 million in the first quarter of 2009, to $42 million in 2010, with shares trading at their lowest price for 10 years.

Two possible buyers are believed to be the German company Dr Oetker and market leaders Yeo Valley as well as an American company.

Plaid Cymru AM Elin Jones said it was vital that any buyer keeps the dairy at Aberystwyth open to safeguard jobs in the area.

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