DFB Agreement with Milk Link PDF Print E-mail
Written by Mark O'Brien   
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The receivers of the Dairy Farmers of Britain (DFB), PricewaterhouseCoopers is reported to have reached an agreement with Milk Link who will provide a contract with a three-month notice period for the remaining DFB farmer members. This option applies to the 143 members still with the co-operative with those who sign up receiving over 18ppl for an industry standard litre. These farmers are principally based in the North East and North Yorkshire, Cumbria and Lancashire, south of Manchester and a smaller number in South Wales.

This contract is effective 1 July 2009 and has been posted and emailed to remaining farmers today. The move comes after a meeting between the receivers: the NFU, Defra, the Welsh Assembly, Dairy UK, the DFB Member Council, the Welsh Union of Farmers and other representative bodies all of which concluded the best solution for the remaining 200 members was to try to find alternative milk buyers. Since the meeting, 60 of the 200 suppliers found contracts but there are a remaining 143 farmers who continue to have their milk collected by the receivers at a wholly uneconomic 10p minimum base price.

The low price levels are due to high haulage costs and the need to sell the collected milk at commodity prices. Milk Link can offer a better price due to their improved efficiencies and a larger milk field. Those members who do not sign up will continue to have their milk collected by PwC but at the lower minimum base price of 10p. "The provision of this contract, we believe, will provide those DFB farmers without an alternative buyer, a much needed period of stability and a secure outlet for their milk. It will also allow them time to assess how they want to move forward in dairy farming." Milk Link Corporate Affairs Director Will Sanderson.





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