10 June 2009Dairy Crest Reacts to DFOB Receivership

10 June 2009

Dairy Crest reacts to DFOB receivership

Following last week’s announcement of DFOB's receivership, Dairy Crest has signed up over 100DFOB suppliers, with the majority transferring their milk supply immediately. 

Dairy Crest is paying this group of suppliers a milk price of 24.2 ppl.  In addition, to assist with the impact the receivership has had on these producers’ cash flow, Dairy Crest will make a one-off interim payment at the end of June for milk supplied in the first part of the month.

Milk Procurement Director, Mark Taylor, stated: "Dairy Crest is acutely aware of the impact that DFOB's collapse has had on its supplying farmers and we are doing all we can to support them at this extremely difficult time, including making an interim payment to new suppliers to assist with their cash flow.

“Although we have now secured sufficient volume to meet our current business requirements, we are still talking to DFOB suppliers in our catchment area about interim supply arrangements with a view to offering a Dairy Crest liquid contract from April 2010.”

Dairy Crest is also in discussion with a number of DFOB’s customers regarding milk supply and it expects to gain additional volumes across the market.  Dairy Crest is already selling more milk to customers who were previously jointly supplied with DFOB and has moved the start date of its increased supply to the Co-operative Group forward to this week.

- Ends -

For further information please contact

Arthur Reeves, External Affairs Director:  Tel 07831 211507