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Arla Foods to close facility in Settle, North Yorkshire

Production will be transferred to the company's site in Lockerbie, Scotland, with the Settle site expected to cease operations by 2027.

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Arla Foods has announced plans to close its dairy facility in Settle, North Yorkshire, impacting up to 120 jobs.

Production will be transferred to the company’s site in Lockerbie, Scotland, with the Settle site expected to cease operations by 2027.

The closure is part of a wider proposal that could also impact some roles at Arla’s Stourton Dairy, although the company does not anticipate any redundancies there.

The move comes alongside Arla’s proposal to invest nearly £90m into its Lockerbie site to support future growth ambitions.

This investment aims to establish a Centre of Excellence for the production of UHT and Lactofree milk, which could create new roles in the area.

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The proposal follows Arla’s broader plan to invest over £300m across its UK operations in 2024, including £34m into Lockerbie’s cheddar production and £179m for new mozzarella-making technology at its Taw Valley creamery in Devon.

Fran Ball, Arla Foods’ VP of production, said the proposals are part of the company’s strategy to strengthen its manufacturing network and future-proof UK dairy production.

Arla has committed to entering a consultation period with affected employees, prioritising support during this period of change.

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Deanne Ferguson, organiser at GMB, said: “If Arla’s proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer.

“It will have a significant economic and social impact.

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“GMB will stand side by side with members to make sure they are fully supported throughout this difficult period.

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“We will now begin urgent discussions with Arla to explore all possible options to protect jobs.

“We call Arla and all stakeholders to engage in full and transparent discussions about the future of the workforce and to consider all available alternatives to compulsory redundancies.”

Bas Padberg, managing director of Arla Foods UK, said: “The proposed investment into Lockerbie showcases our commitment to driving change in the UK, and supporting the future of British dairy.

“There is an increasing focus on the role the UK food industry plays in helping to tackle the health crisis and provide good food to nourish a growing population.

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“We are aware that this proposal has the potential to impact colleagues across some of our UK sites, and our priority is to support them through this challenging time.”

Arthur Fearnall, Arla Foods UK board director and Arla farmer, said: “We are incredibly proud to see this significant investment proposed for Arla’s Lockerbie site.

“We’re excited to see how this progresses over the coming years as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”

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