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LIQUIDS
Page 9
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Dairy co-op receivership
THE DAIRY FARMERS of Britain (DFOB) has gone into receivership, casting doubt over the long-term prospects of its haulage contractors.
The dairy co-operative, responsible for 10% of the UK's annual milk production -one billion litres -appointed PricewaterhouseCoopers 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 was motivated by a desire to deriver efficiencies on haulage and administration."
Or See page 20 for CM's full report on the agricultural haulage sector.