Watson’s Dairy in Mislingford near Wickham is to close with the loss of 144 jobs.
It’s owner Medina Dairy said it had become unviable after the loss of a supermarket contract.
Medina Dairy Chief Executive Sheazad Hussain said: “It is with much regret, that we have announced our proposal to cease operations at our Watson’s Dairy site.
“The proposal follows a major review of our business which concluded that by simplifying and consolidating our processing activity we will be able to create a more sustainable and appropriately scaled business.
“This, in turn, will enable us to continue to deliver a high level of service to existing customers and provide a platform from which we can respond to future market opportunities.”