A special job shop will be set up to provide help on an individual basis with all aspects of job search

Carmarthen manager Eurig Jones

It will be the biggest operation of its kind in Britain.

Dairy Crest is second only to Express Dairies plc in the UK liquid milk market after its �250m purchase of Unigate's diary and cheese business last July.

The operation at Johnstown in Carmarthen will shut down in October, with the loss of 270 jobs. That will be followed by Marshfield in Cardiff early next year where there 275 people are employed.

Farmers' Union of Wales spokesman Peter Davies said the decision reflected Dairy Crest's lack of confidence in the Welsh dairy industry.

"It is a mixed message - other companies are investing substantially in Wales," he said.

Dairy Crest's Mark Youds said staff had been "understandably shocked" by the announcement.

A spokesperson for the company said a "phased transfer" of production would begin in January 2002.

Carmarthen site manager Eurig Jones said the company recognised the impact this decision will have on staff and families but we hope some staff from Carmarthen will join the team in Maelor.

Rationalise operations

"A special job shop will be set up to provide help on an individual basis with all aspects of job search," he said.

The group has announced plans to cut a further

It will "consolidate" its blue cheese processing and packing operations at Hartington, Derbyshire.

This will see the Harby plant in Leicestershire close in April 2001, with the loss of around 100 jobs.

It will "rationalise" its butter and milk powder operations, resulting in 70 job cuts at Chard, Somerset, and 40 at Crudgington, Shropshire.

As a result, Crudgington will become the centre for its range of dairy spreads, packet and speciality butters.

Packet butter processing will be moved from Chard to Crudgington, and skimmed milk powder production at Crudgington will cease.

Chard will become a dedicated dairy ingredients site, producing bulk butters and skimmed milk powders.