The closure of a Carmarthenshire cheese factory will push down the milk price paid to local farmers, the FUW has warned. It says the loss of the Saputo factory at Newcastle Emlyn, would be a 'hammer blow' both to the farmers who supply it and to the 70 employees who will lose their jobs.
The union fears that if a buyer is not found for the factory, more Welsh milk will be sent many miles to be turned into cheese or milk powder in England. Less money will be paid to farmers and more spent on haulage costs.
– FUW vice president Brian Walters
That doesn't make any sense at a time when consumers are increasingly seeking to buy more and more local food and drink. Closure of the factory will be a huge blow to the workers there and to its milk suppliers who will have to seek alternative buyers for their produce at such short notice. It will create downward pressure on the price they can expect to receive in the future.