The two plants produce milk and long-life milk products

Milk Link is axing up to 45 jobs at its Kirkcudbright plant, as well as staff in Crediton, Devon.

It is understood the job cuts have been brought about by the loss of several supermarket contracts.

The Bristol-based co-operative, owned by thousands of farmers, last month abandoned plans for a merger with Glasgow-based First Milk.

The job cuts are a second blow for the Kirkcudbright plant, which employs about 130 staff and is one of the main employers in the area.

The company says it is due to the loss of a number of contracts Alex Fergusson Galloway and Upper Nithsdale MSP

Two years ago 34 jobs were lost at the plant, which is involved in the production of Scottish Pride brand products for the food service sector and firms such as Netto and Iceland.

Management say they are briefing staff and hope that some of the job losses will be through voluntary redundancy.

Alex Fergusson, MSP for Galloway and Upper Nithsdale, said it was a big blow for the area.

He said: "The company says it is due to the loss of a number of contracts and although they have been able to make up some of the work, they have been forced to make redundancies at Kirkcudbright and also at Crediton in Devon.

"It is to be hoped that if this goes ahead then it will make it more efficient and able to expand in the future."