THE decision to stop Denhay's production of cheese has been heartbreaking, says owner George Streatfeild.

Denhay Farms at Broadoak announced the closure of its award-winning cheddar cheese production - which employs ten people - on Monday.

Mr Streatfeild said the decision was painful, upsetting and heartbreaking but necessary.

He said: “It was a very difficult decision to make. We have been making cheese for 54 years.

’”It’s absolutely heartbreaking but the reality is that we are unable to get the returns from the market place that we need to make a profit.

“It was very painful decision but the right decision because if you are not profitable you end up damaging the whole business.”

He said the dairies and the bacon sides of the business were doing well.

He added: “It is really upsetting for Amanda and I because it has been in our family for 54 years but you have to put that aside and make the right financial decision first.

“Obviously it is really upsetting for the people involved because it is their jobs and their livelihoods but that is another reason for making the right decision so we don’t damage the rest of the business.”

Mr Streatfeild said they were doing everything they could to help their employees and redeploying them where at all possible.

The increasing costs of production and the very competitive nature of the business were cited as reasons for the demise of the cheese business.

Denhay managing director Jim Loescher said: “It is with a huge amount of sadness that we took the decision to close the cheese production facility.

“We recognise the role that Denhay Farms plays in the local area and the significant contribution of our employees.

“We have spoken to employees today and we are fully committed to support them in any way we can during this difficult time.”

Mr Loescher said the closure would free up capital and management time to invest in farming the expanding bacon and sausage business.

As Denhay owns its own cows, the milk previously used for cheese production will now be sold on to other processors.

West Dorset NFU secretary Paul Bennett said: "Denhay as cheesemakers have been a market leader and this will be a great loss to the West Dorset food sector “The margins for farmhouse cheese makers in particular have been extremely tight and I can understand difficult decisions have had to be made, to focus on and grow other areas of the business."

The family-owned farming and food production business was founded in 1952 by two farming families, the Hoods and the Streatfeilds.

The majority of Denhay's business is in the production of award-winning bacon under the Denhay and Spoiltpig brands.

Denhay’s traditionally made cheddar won many awards and the majority of Denhay cheddar is sold in Waitrose as their own brand West Country Farmhouse cheddar.

Denhay Cheddar was also supplied to many independent stores in southern England and exported to America and Europe.

Anne’s Anne Bell file pics Denhay Farms at Broadoak has announced the closure of its award-winning cheddar cheese production facility, which employs ten people.

A statement from the company said that it would be “maximising opportunities” for redeploying workers across the business.

Denhay has been producing West Country Farmhouse Cheddar for 50 years, but the statement said that due to the competitive nature of the business and increasing costs of production, the company has been unable to secure a commercially viable price across all sectors of the market.

The National Farmers' Union said that the move was “a great loss” to the food sector in West Dorset.

Denhay managing director Jim Loescher said: “It is with a huge amount of sadness that we took the decision to close the cheese production facility.

“We recognise the role that Denhay Farms plays in the local area and the significant contribution of our employees.

“We have spoken to employees today and we are fully committed to support them in any way we can during this difficult time.

“Whilst we are disappointed to be leaving the leaving the cheese sector, this is the right decision for the business and it will free up capital and management time to invest in our farming activities and our rapidly expanding bacon and sausage business.”

As Denhay owns its own cows, the milk previously used for cheese production will now be sold on, as the business develops relationships with processors.

The statement continued: “Denhay is committed to the UK dairy industry and this area will remain an important part of the business.”

West Dorset NFU secretary Paul Bennett said: "Denhay as cheesemakers have been a market leader and this will be a great loss to the West Dorset food sector “The margins for farmhouse cheese makers in particular have been extremely tight and I can understand difficult decisions have had to be made, to focus on and grow other areas of the business."

The family-owned farming and food production business was founded in 1952 by two farming families, the Hoods and the Streatfeilds.

The majority of Denhay's business is in the production of award-winning bacon under the Denhay and spolitpig brands.The traditionally made cheddar has won many awards and the majority of Denhay cheddar is sold in Waitrose as their own brand West Country Farmhouse cheddar.

Denhay Cheddar is also supplied to many independent stores in southern England and is exported to America and Europe.