Blog: Business turns sour for Dairy Farmers of Britain
Dean Best | 3 June 2009
The outlook looks sour for UK dairy co-operative Dairy Farmers of Britain and its 2,000-plus farmer members.
DFB's management held talks this afternoon (3 June) to discuss the co-op's plight – with a possible move into administration likely.
But why has DFB, one of the UK's largest dairy co-ops, fallen on hard times?
In short, DFB's plight is a reflection of the tough trading environment in the dairy sector.
Despite recent moves to cut the price it pays its suppliers, DFB has faced fierce competition in the liquid milk and cheese sectors.
Losing a contract to supply fresh milk to UK retailer The Co-operative Group was a big blow to DFB and the future for the business remains uncertain.
DFB's management has led a strategic review of the business, which led to the company being split into two divisions – milk supply and cheese.
Industry watchers speculated that the revamp would make the company more attractive to potential buyers. Two weeks ago, DFB sold dairy ingredient business Nene Valley Foods.
The whole business could now face a sale – while its thousands of farmer-members could be forced to find new buyers for their milk.
A year after union officials alleged Fyffes abused workers on plantations in Central America - and called on the produce giant to be kicked out of the Ethical Trading Initiative forum - the company is...
Much of the chatter about where 3G Capital could look next has centred on packaged food - but might the private-equity fund be about to extend its foodservice empire?...
Headlines that Mead Johnson's board has backed Reckitt Benckiser's takeover bid will no doubt overshadow the other news on the group this week – that it is facing a US lawsuit from a “whistle blower” ...
Kantar Worldpanel issued its monthly supermarket share data in the UK this morning - and the numbers showed a change in the identity of the country's top five food retailers....
- Does Kraft Heinz want to swallow Unilever whole?
- Focus: Nestle CEO plan to balance sales, earnings
- Comment: Meal kits in US - don't believe the hype
- Is Mondelez's margin target hurting sales?
- Will Kellogg's DSD exit help it grow in US snacks?
- Nestle plans restructuring as 2016 profit misses
- Kraft Heinz pursuing Unilever in takeover move
- General Mills issues profit warning
- Kraft Heinz returns to organic growth, ups margins
- Kraft Heinz pulls Unilever bid