At a meeting on August 22 Norrmejerier’s board has decided to phase out Luleå Dairy, which employs 60 people. Norrmejerier’s production of ‘fil’, milk, and cream will be consolidated in Umeå.
The reason for the closure of Luleå Dairy is declining milk consumption, low capacity utilization, significant investment needs in the coming years, and a generally weak profitability in the company.
The decision is based on an analysis of Norrmejerier’s dairy structure with the aim of ensuring profitable milk production in Norrland in the future. The in-depth investigation conducted since June does not alter the analysis’s conclusion.
– I empathize with our dairy employees in Luleå, but the costs at the owners’ farms remain high, even higher than the previous year. This puts pressure on profitability and requires us to do everything possible to provide the highest possible compensation to our milk suppliers, says Göran Olofsson, Chairman of the Board for Norrmejerier.
The phasing out in Luleå and the relocation to Umeå will take place gradually in the coming years, with planning commencing immediately. Luleå Dairy, one of Norrmejerier’s three dairies, employs around 60 people, and negotiations with labor unions have begun.
In a press release, Norrmejerier emphasizes that the owners, the Northern Swedish dairy farmers, will not be affected by the relocation. Milk will continue to be collected throughout Norrland.
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