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Dairy Farmers of Britain goes into receivership
Dairy Farmers of Britain – the troubled UK milk cooperative – has gone into receivership. The cooperative employs 2,200 people, has 1,800 farmer members across Great Britain who supply over one billion litres to the food and drink industry, comprising 10% of UK milk production.
Stephen Oldfield, joint receiver and partner at receivers PricewaterhouseCoopers, said: “Dairy Farmers of Britain has experienced very challenging trading conditions in its liquids business. Efforts to sell the liquids businesses continue, but the DFOB board were unable to identify a viable way forward given the trading losses and the inability to pay an economic milk price. As such, they were left with no option than to invite the appointment of receivers.
“My team and I will be focusing all of our initial efforts in working with the DFOB key suppliers and customers to keep the daily collection and supply of milk flowing. This will not be easy, but with the help of key hauliers and our customers, I hope to be able to collect and distribute the vast majority of DFOB milk. I will also be focusing on the sale of the groups’ hard cheese and liquids businesses to seek to try to secure the significant number of jobs in those businesses.”
According to one industry commentator, the move follows an unproductive meeting between the board of DFOB and its bank.
DFOB chairman, Lord Grantchester, said: “In recent months, the board has been working tirelessly to restructure the business and provide its members, employees and customers with certainty going forward. Clearly, the decision to invite receivers isn’t an easy one, but the board was unfortunately left with no alternative.
“What’s most important now is that the supply chain is maintained through to our consumers, that jobs are saved, and that there is a home for our members’ milk. We will do whatever is appropriate to assist the receivers in achieving this outcome. On behalf of the board, I would like to thank all of those members, employees, suppliers and customers who have shown their support for DFOB through these extremely difficult times.”
Dairy Farmers of Britain’s brand portfolio includes DFOB milk, cream and cheese; 1st Grade cheese; Cadog cheese, milk and butter; Definitely Yorkshire milk and Somerset soft cheese.
Source: PricewaterhouseCooper
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