French dairy co-operative Terra Lacta, which is poised to forge a partnership with Bongrain, is to close two plants and axe 237 jobs as part of a restructuring programme.
Speaking to just-food, a senior manager underlined the cutbacks were not linked to the tie-up with Bongrain, which is due to take effect later this year.
Go deeper with GlobalData
“Terra Lacta has been hit head on by the crisis in the dairy sector focusing on prices, particularly for UHT milk,” he said.
The two plants earmarked for closure are both situated in western France, one producing UHT milk and the other soft goat cheese. They are set to be shut
down by the end of March 2014.
Terra Lacta will also shed staff occupying administrative, commercial and logistics posts at its HQ in Surgères.
“The consultative process with staff representatives will begin next month and the priority will be to find alternative employment for as many workers as possible,” he added.
Terra Lacta employs a total of 1,230 staff, working at 13 sites.
