Up to 50 jobs are at risk after dairy giant Muller announced it is reviewing the viability of its Aberdeen depot.
The firm has launched a 30-day consultation into its distribution, garage, tanker and retail operations in the city.
Muller is proposing to relocate its operations to existing sites in central Scotland, which are closer to its customers’ regional distribution centres.
Staff in Aberdeen are said to have been “devastated” by the announcement, made yesterday, while city leaders expressed anger at the plan and its potential impact.
It follows the closure of Muller’s milk processing facilities in Aberdeen in 2016 – a move which resulted in many of its farmer suppliers in the region having to pay 1.75p per litre of milk produced to get it transported to the central belt for processing.
Muller Milk & Ingredients Distribution chief executive officer, Ian Smith, blamed declining consumption of fresh milk and significant changes in retailing for the proposed closure.
He said: “The volume going through our Aberdeen site has been severely impacted and with the majority of our customers’ distribution operations now located in central Scotland, we need to take action.
“We are ready to consult to ensure that our operational capabilities meet the requirements of all of our customers both now and in the future and we will work hard with our employees and their representatives over the next 30 days to find the right solutions.”
He said affected employees would be offered opportunities to relocate, or supported if this option wasn’t possible.
Trade union Usdaw intends to closely scrutinise Muller’s business case for the potential closure.
The union’s area organiser, Kate Cumming, said: “Usdaw members working in Muller’s Aberdeen depot are clearly devastated by this announcement.
“We are providing our members with the support, advice and representation they need at this very difficult time.”
Aberdeen South and North Kincardine MSP, Maureen Watt, said: “I have written a letter to Rural Economy Secretary, Fergus Ewing, to ask if there’s any reassurance for dairy farmers in the north-east, and also to Employment Minister, Jamie Hepburn, asking him to make sure the PACE team will be able to look after workers.”
Scottish Conservative MSP, Peter Chapman, said: “Closure of the site would leave local dairy farmers in the north-east cut off from the main hub of the business.
“But I would hope and expect that this would have no impact on contracts or prices for local producers.”
Aberdeen City councillor, John Cooke, added: “No doubt this will be good for Muller’s profit margins. Whether it’s as good for the environment to have milk delivered in large lorries from a hundred miles away is another matter.
“The firm didn’t do north-east dairy farmers any favours when they closed their Aberdeen dairy operations back in 2016.”
