The BBC is reporting that the Saputo cheese factory in Newcastle Emlyn is to close with the loss of 70 jobs.
The loss of 70 jobs affecting nearly the same number of local families in a community with a population of around 1,500 will be a devastating blow to the town and the surrounding area, where many local dairy farms supply the factory with milk.
We have been here before, and the factory has changed owners several times in the last few years. Only a couple of years ago there were allegations that the previous owners had been syphoning off profits from the factory to subsidise other parts of the group of companies.
Saputo specialises in mozzarella, used mainly in the manufacture of pizza, although recently the company has started diversifying into other products, including marscapone made from cream.
The factory's Canadian owners now say that the plant is not profitable and are seeking to close it.
The scale of the job losses may not seem that serious set against what has happened in other parts of Wales, but the loss of what is overwhelmingly the town's largest employer and the largest customer of quite a number of local dairy farms will have disastrous consequences in an area where there is very little alternative employment.
The best hope is that the Welsh Government will step in and explore whether the factory could have a long term future as a cooperative venture. There are some great local cheese producers in the area, which lends itself to dairying. Surely we can build on that strength?
Monday, February 25, 2013
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