Dairy Farmers of Britain in receivership

DAIRY Farmers of Britian, the Cheshire-based dairy co-operative has been put into receivership, putting 2,200 jobs at risk.

Headquartered in Nantwich, Dairy Farmers of Britain has been struggling for some time and has sought to cut costs and last month sold its Nene Valley businesses to Chester-based Meadow Foods.

The receivership will hit 1,800 farmer members across the country who would be forced to find a new buyer for their milk if the company can’t be rescued.

In November it closed two dairies and in April its chief executive Andrew Cooksey stepped down.

Three recovery experts, Stephen Oldfield, David Kelly and Ian Green, from PricewaterhouseCoopers’ Manchester office have been appointed joint receivers.

Mr Kelly 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.”

“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.”

Lord Grantchester, chairman of the board 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.

“What is 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.”