THE consortium of farmer-owned milk co-operatives has negotiated outline terms of a deal with receivers PricewaterhouseCoopers to secure the future of the Westbury plant. It is hoped a contract can now be completed within two weeks.
Speaking at the Dairy Event at Stoneleigh, Warwickshire, co-op chiefs confirmed that a deal to lease Westbury had yet to be completed, but both sides were confident of success.
The plant will remain operational while work on the deal continues - an assurance that will give Westbury's direct suppliers confidence that their milk will continue to be collected and processed while the co-ops work to on the agreement.
Westbury Dairies, the new company set up jointly by the co-ops, issued contracts to direct suppliers last week, asking them to sign-up by September 22. The company also confirmed new payment terms for suppliers as well as details of its interest free loan offer designed to cover outstanding payments for those who take up its offer of a new supply contract.
Subject to a deal being completed, those signing-up to supply Westbury Dairies directly in future will receive a milk price based on the average published price paid by Dairy Farmers of Britain, First Milk and Milk Link.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article