Cheshire Dairy farmers have a week of turmoil after milk co-operative goes bust

Jun 11 2009 by Naomi Dunning, Chester Chronicle

SPECIAL REPORT by NAOMI DUNNING

HUNDREDS of dairy farmers were plunged into turmoil after milk cooperative Dairy Farmers of Britain (DFB) went bust.

Cheshire’s farmers are now hoping a deal with company Milk Link will save their livelihoods.

DFB was established in 2002 with each farmer involved investing in the business.

In 2004 the co-operative acquired Llandyrnog Creamery in Denbighshire where many of the Cheshire’s DFB members’ milk was processed.

At a DFB council meeting last Wednesday the chairman announced the receivers had been called in as the co-operative had gone into administration.

Malpas farmer and DFB council member Barbara Hughes said: “We were devastated and distraught. We knew it wasn’t going well but had no idea what was happening.

“I went into a state of panic . We just didn’t know who we were selling our milk to.”

Members of DFB were told about the business’ collapse on Thursday.

“I have been on the phone all week talking to farmers, they are very upset and panicked.

“We have just invested so much money in this and it is devastating.”

On Thursday, the dairy company Milk Link expressed an interest in buying Llandyrnog Creamery and signing up those farmers who were part of DFB.

The DFB council went into talks with Milk Link and discussed with them the best milk price they could get for their farmers.

A deal was successfully agreed on Friday. Milk Link called all the DFB farmers to a meeting at the cattle auction in Ruthin where they explained to members what was happening and gave them a chance to look at the contracts.

Barbara said: “There were around 120 members at the meeting and I reckon half signed up, the other half took the contract home to have a closer look at.”

Huxley farmer Peter Ankers said he was disappointed with what had happened.

He said: “We are very fortunate that Milk Link has stepped in and rescued us. I was satisfied with the contract. It is a good creamery and a good co-operative as far as I am concerned, and they sell to some of the major supermarkets. We cannot worry about what has happened and now we just have to move on and get on with it.”

Neil Kennedy, Milk Link Chief Executive, said: “This is great news both for Milk Link and the loyal staff and farmers who are at the very heart of the Llandyrnog Creamery. The acquisition of Llandyrnog will complement our existing market leading cheese business and we believe will deliver, over time, substantial business benefits.”