Milk processor Dairy Crest will close two dairies as part of plans to improve profitability in its low-margin milk division by consolidating production.
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The news coincided with the loss of a contract to supply liquid milk to Tesco, although the business accounted for just 3 per cent of Dairy Crest's milk sales and will not hit this year's profit target, which is underpinned by continued strong performances from its branded foods.