Dairy co-operative has gone into receivership with 2,200 jobs at risk after losing key contract with the Co-op supermarket
Dairy Farmers of Britain (DFOB), the milk co-operative, has gone into receivership, putting 2,200 UK jobs at risk.
One of the UK's biggest milk providers, DFOB struggled after losing one of its biggest contracts, to provide milk to Co-Operative stores around the country. The milk company, which acted as a broker between farmers and supermarkets, also suffered as two of its dairies became too expensive to run. After they closed, DFOB was no longer able to pay its farmer members a competitive milk price, and they left in droves.
Administrators at PricewaterhouseCoopers are now trying to sell off the company's hard cheese and liquids businesses as a package. They have assured customers that the business, which provides 10 per cent of UK milk production, will continue to deliver milk.
Its collapse is the latest blow to the UK's dairy farmers, who have suffered in recent years as milk prices have fallen and large chains of supermarkets have dominated the buying landscape
Stephen Oldfield, joint receiver and partner at PricewaterhouseCoopers LLP, said: "Dairy Farmers of Britain (DFOB) 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.”
Lord Grantchester, Chairman of DFOB, 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 is not an easy one, but the board was unfortunately left with no alternative."
Source:The times
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