The mill in Bradford Road, Melksham has closedFORTY-NINE jobs have been axed at a farming supplies firm with bosses blaming the agricultural climate for the losses.

Countrywide Farmers, in Bradford Road, Melksham, announced it was closing its animal feed mill after joining forces with another company.

The mill will be decommissioned and sold off for redevelopment.

The closure prompted a warning from the National Farmers Union, which this week said it feared the decision was an 'ominous portent' for the industry.

Countrywide Farmers confirmed half the workers involved in feed production would lose their jobs, with the other half being offered transfers to other parts of the company.

The firm's supplies store is unaffected.

News of the cuts came after Countrywide formed a trading partnership with BOCM PAULS, one of the UK's biggest feed producers.

The deal means production at the Melksham mill will be transferred to BOCM's mills across the south of the country.

Denis Chamberlain, spokesman for Countrywide, said the company regretted the cuts.

"Nobody likes to see jobs lost not only because of the effect on the local economy but also the people involved," he said.

"There will be discussions ongoing with the staff and there has been full consultation since the announcement was made. That will continue as management deal with the issue."

Mr Chamberlain said the Common Agricultural Policy reform, which introduced a single payment scheme for farmers, changed the state of play for everyone.

"It means the industries supplying farmers have to change as well," he said.

"We need to get economies of scale and drive prices down.

"There are a lot of small mills around the country that have closed down for that reason.

"It is similar to what happened to the corner shop when Mr Tesco came along."

Ian Johnson, a spokesman for the NFU, said the impact of the CAP reform was still unclear, but stressed farmers should not be blamed for cutting their costs.

"We are at a crossroads. The dust is yet to settle," he said.

"It is an indicator there will be a considerable shake down in the industry and it could be very dramatic if the farmers do not get the right signals.

"Arable and dairy farmers are getting the same money now as they did in the 1970s but costs have gone up 10 to 12 times.

"It is difficult to criticise the company for making a hard commercial decision but it is perhaps a very ominous portent in the way of the world to come."