UP TO 23 jobs are to be axed when Farmcare ends milk production on its 4,300 acre estate near Swindon.

The firm, part of the Co-operative Group, has announced the plans as part of a move to restructure its milk business in what it says is a "tough trading climate".

It will result in the loss of 13 full time and 10 part time jobs at three farms on the huge Cotswold estate Alex Farm near Cricklade, Castle Hill Farm at Down Ampney and Poulton Hill Farm, near Poulton.

The firm says the move is necessary because of significant losses in the business and on-going market pressures.

A spokesman for Farmcare, Phil Edwards, said: "We regret having to make this decision, but it is essential if we are to sustain and expand our national milk business.

"We have taken the decision only after a detailed review of our milk production facilities.

"Down Ampney has incurred substantial losses on milk and needs significant investment in order to be profitable.

"Unfortunately this is not justified at a time when the UK market is under severe pricing pressure.

"It is essential that we concentrate investment and expansion on those of our units where we are already profitable."

Farmcare has plans to convert the land currently used for the dairy herd at Down Ampney into arable crop production.

Under the terms of the plan, milk production on the estate will cease by the autumn.

Mr Edwards added that Farmcare had entered into consultation with the Transport and General Workers Union about the job losses and said the company would be making "strenuous efforts" to find alternative employment for those affected by this week's announcement.

Neil Blizzard, who has worked for Farmcare for more than five years as herd manager at Castle Hill Farm, in Down Ampney, said: "The news has come as such a shock. We just cannot believe it. It's going to affect us all and we are totally gutted.

"We will finish milk production on the farm by the start of the autumn, but it's such a shame."