Northen Foods to sell Eden Vale yoghurt

In an attempt to focus on other aspects of the company's business, Northern Foods is considering selling its Eden Vale yogurt facility.

The site is valued at £19 million ( €27 million) and it produces thousands of tons of yoghurt, fromage frais, cottage cheese and desserts. But recently the site has been seen as less profitable for its parent company Northern Foods, which is itself in a midst of financial worries.

Last year, for example the Eden Vale's chief executive was outed folwing the company's third profit warning in 18 months.

It appears that the company's financial unpredictability coupled with the fact that other sectors of Northern Foods' business are growing at a faster rate has led it to consider the sale. Northern Foods' ready-meal business has witnessed a growth in recent years and it is believed that the company will focus more on this sector.

Eden Vale mainly focuses on own-label products for Marks and Spencer which is Northern Foods' single largest customer. Northern Foods has not commented if the relationship with the retailer will change if the dessert unit is sold.

Dairy Crest is thought to be the most likely successful bidder for the operation, but it is not expected that any deal will be announced before March, Northern Foods claims.