THE future for the economy of Ceredigion looks "bleak" unless a regeneration package can be put in place following hundreds of job losses in the dairy industry.

And uncertainty about the future at the Dansco cheese processing plant in Newcastle Emlyn is contributing to the "fragile situation", say councillors.

The economic development committee of Ceredigion County Council this week urged the authority's Cabinet to hold discussions with the Welsh Assembly to find ways to regenerate the economy of the county following job losses at cheese processing plants in the Aeron Valley.

Members heard that Cllr Eurfyl Evans, the member with responsibility for economic development, has already written to minister Carwyn Jones pointing out that the potential loss to the local economy of the most recent job losses at Aeron Valley Cheese would run into millions of pounds.

"It is more than a cheese factory. The domino effect on the local economy is enormous," he said.