Dairy producer Saputo is facing significant workforce reductions, with 60 jobs potentially impacted at its UK facility in Davidstow, Cornwall, as the company ceases production of infant-formula ingredients.
The UK arm of the Canada-based dairy giant indicated that while 60 positions are at risk at Davidstow Creamery, another 20 jobs are threatened at various plants across the country.
Saputo Dairy UK issued a statement to Just Food, declaring plans to halt the manufacturing of demineralised whey (D90) and galacto-oligosaccharides (GOS) at its Davidstow site. This strategic change is attributed to “demographic shifts and changes in demand for different whey formats.”
Consequently, the company will redirect its operations towards producing sweet whey powder.
“Market conditions necessitate that we take difficult but decisive actions to simplify our business and achieve meaningful efficiencies, ensuring we are best positioned for the future,” stated Saputo.
If the proposal proceeds, approximately 80 redundancies are expected.
When asked where the remaining 20 job cuts would occur, Saputo stated only that they would be “across the rest of the UK business,” and did not confirm to Just Food which clients receive their infant-formula ingredients.
It should be noted that Cheddar cheese production continues at the Davidstow facility, as clarified by the owner of the Cathedral City brand.
In 2013, the company pivoted its focus toward producing “functional ingredients” like sweet whey powder. Saputo expressed that continuing to service the infant formula market is “no longer in our best economic interests,” according to the statement.
Importantly, Saputo reassured that these proposed changes will not affect their supply to farmers or cheese production.
Moving forward, the company will engage in a consultation period with affected employees, committing to provide thorough support to those impacted by these proposals.
The anticipated completion date for these changes is by the end of September 2025, as noted by the dairy powerhouse.
Earlier this year, the Canada-based parent company reported a drastic increase in third-quarter losses, primarily attributed to an impairment in its UK operations. In that quarter, Saputo recorded a loss of C$518m ($362.6m), compared to a C$124m loss the previous year.
A “non-cash goodwill impairment charge” of C$674m associated with the UK division significantly contributed to these widening losses.
Furthermore, Saputo has been actively closing plants recently, specifically in the US and the UK, with some closures occurring in Australia as well. In January, Saputo announced plans to close a UK dairy facility in the north of England following another closure in the south.
In parallel, discussions have commenced with staff at the Kirkby Malzeard plant located in Harrogate, North Yorkshire, where Wensleydale cheese is produced.
Last September, the company also announced plans to close its King Island Dairy operation in Australia by mid-2025, affecting 58 employees.
In June, additional details emerged regarding the shutdown of six US plants, two of which have already stopped operations—one in Belmont, Wisconsin and another in Big Stone, South Dakota. The remaining four are expected to close in the early part of this year, including two facilities in Wisconsin and two in California.
In 2023, Saputo UK communicated the closure of its Frome factory in Somerset, which ceased operations in May, resulting in over 150 job losses.
