The Dairy Farmers of Britain (DFOB) has gone into receivership, causing concern for its haulage contractors.
The dairy co-operative, responsible for 10% of the UK's annual milk production – 1 billion litres – appointed PricewaterhouseCoopers (PWC) as receiver following a meeting with the banks and executives.
Joint receiver Stephen Oldfield says: "Dairy Farmers of Britain has experienced very challenging trading
conditions in its liquids business. Efforts to sell the business continue, but the DFOB board were unable to identify a viable way forward given the tough trading losses and the inability to pay an economic milk price."
Despite this, the DFOB has entered into an agreement with the Organic Milk Suppliers Co-operative Limited (OMSCo) to collect and market organic milk produced by DFOB members
OMSCo vice-chairman Sam Taylor says: "This agreement, which has been agreed and concluded very quickly, was motivated by a desire to deliver efficiencies on haulage and administration to the enlarged organic pool."
Anthony Crozier, a Northumberland-based farmer and DFOB member, adds: "We contract our haulage to the Lloyd Fraser Group, and, at the moment, milk collections haven't been disrupted. Like us [farmers], the hauliers are running tight margins and any hiccups like this make a tough business even tougher."
Reed Business Information Limited.©2009
