The milk supplier Dairy Crest has announced plans to close production sites in Aintree and Fenstanton, putting 470 jobs at risk. The glass bottling dairy at Aintree employs 220 people, while the Fenstanton site in Cambridgeshire employs 250.
Dairy Crest said that the closures are a result of a recent £75m investment programme focusing on other dairies at Severnside in Gloucestershire, Chadwell Heath in London and Foston in Derbyshire.
Chief executive Mark Allen said that the dairy closures were needed to protect the future of the company.
He said: "The decision to consult on the closure of our Aintree and Fenstanton facilities has not been taken lightly, but we believe that this proposed restructuring of our dairies business is the right decision for the long term."
Analysts believe the closure at Aintree reflects the decline in residential milk trade as more and more people buy their milk in plastic bottles and milk bags rather than glass bottles.