Meadow Foods helps DFOB suppliers

MEADOW Foods, the Chester-based dairy products group, is helping suppliers hit by the collapse of Dairy Farmers of Britain (DFOB).

The company has set up a £750,000 early payment fund for dairy producers that switched their milk supply to it.

Meadow will be processing interim payments this week to farmers that have been left without milk cheques from DFOB for May, bringing forward normal payment terms by more than a month.

Simon Chantler, executive chairman of Meadow Foods, said: “Cashflow is the biggest issue facing former DFOB producers. Although it’s encouraging that many farmers have found alternative buyers for their milk, they face an extended payment void that is putting them under exceptional financial strain. We have taken the decision to bring forward payments to bridge the gap.”

Meadow Foods, the UK’s leading independent dairy group, is taking supply from more than 100 former DFOB producers after the co-operative went into receivership on June 3.

It follows Meadow’s acquisition of Nene Valley Foods, a wholly owned subsidiary of Dairy Farmers of Britain Processing last month.