A group of farmer-owned, milk-buying cooperatives is preparing an offer for milk processor United Milk that could stop the farmer-controlled firm from going out of business.
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United Milk called in the receivers on Tuesday because of financial difficulties, which the National Farmers Union said it believed were mainly caused by United Milk’s failure to secure a sufficient supply of milk to cover costs at its plant.
“We have indicated to the receivers that we are preparing an offer, although we cannot disclose the details at this point – it’s still early days,” Paul Gibson, a spokesman for Dairy Farmers of Britain, told Reuters.
“Dairy Farmers of Britain is working together with the First Milk and Milk Link co-operatives to secure the future of the Westbury factory in farmers’ hands,” Gibson said.
United Milk, which has a processing capacity of 2.4 million litres of milk per day, employs 125 people and has an annual turnover of £100m (US$158.5m), reported Reuters.
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