Colchester: 42 milk jobs axed

The announcement was made today by the Colchester and East Essex Co-operative Society.

Bosses said it was part of a cost-cutting restructuring of the company's dairy operations.

The milk processing plant at the Co-op dairy site in Wimpole Road, New Town, Colchester, will shut down.

It will still be used as a depot for milkmen delivering in the north-east Essex area.

The processing operation will transfer in phases to the Ipswich and Norwich Co-operative Society's dairy plant on the outskirts of Ipswich.

The Co-op stressed its 88 doorstep delivery rounds, the supply of its own 31 food stores, its wholesale business and other milk distribution depots, at Clacton, Tiptree and Braintree, would remain and be developed.

Chief executive Chris Blanchett said: "The dairy industry is undergoing great change.

"Milk processing is increasingly being consolidated into a small number of large modern processing units and the competitive pressures resultant from this need to be recognised.

"The society was also very concerned that the ever increasing environmental pressures of operating a dairy close to the town centre were significantly adding to costs.

"Given this background we concluded the best way of protecting our doorstep service, which delivers to 42,000 homes daily, was to work in partnership with our neighbouring Co-op."

To accommodate the extra production, the Ipswich plant will be enlarged and additional staff will be required.

Co-op bosses said the 42 Colchester staff would be offered a chance to transfer or a generous voluntary redundancy package.

Mr Blanchett added: "The society also plans to expand its retail and wholesale business by acquiring more dairy rounds and contracts wherever possible, which will hopefully, create some new jobs."

Colchester and East Essex Co-op profits rose by nearly £1 million in the past year.

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