A proposed Cheddar plant could compromise efforts to increase the price of cheese.
Partners in Cheese’s planned 400 million-litre Cumbrian plant is almost certain to destabilise the cheese sector because of its “added capacity, zero customer base” offering, said one senior industry source.
However, rivals are set to stand firm. It is thought Dairy Crest will not close its Aspatria factory, because of its contract to become the sole supplier of own-label cheese to Asda.
Nor is Milk Link likely to shut or sell its Lockerbie factory. Despite the loss of the Asda cheese contract, the plant will process more milk this year, not less, said Milk Link.
Partners in Cheese’s planned 400 million-litre Cumbrian plant is almost certain to destabilise the cheese sector because of its “added capacity, zero customer base” offering, said one senior industry source.
However, rivals are set to stand firm. It is thought Dairy Crest will not close its Aspatria factory, because of its contract to become the sole supplier of own-label cheese to Asda.
Nor is Milk Link likely to shut or sell its Lockerbie factory. Despite the loss of the Asda cheese contract, the plant will process more milk this year, not less, said Milk Link.
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