Jackals in the Countryside

Milk companies taking advantage of DFB producers

News | 9 June, 2009
By Howard Walsh

MILK companies that are known to be taking advantage of vulnerable Dairy Farmers of Britain producers’ plight, will be exposed, NFU dairy board chairman Gwyn Jones has pledged.

“I am receiving a growing number of reports that some buyers are taking advantage of farmers in vulnerable positions and offering shamefully low milk prices.

"I will be investigating this matter further and any buyer that is proved to be profiteering and exploiting farmers will be exposed,” said Mr Jones who’s team met with DFB representatives and receiver PricewaterhouseCoopers on Monday,

The meeting was set up to see what could be done to help the union’s dairy members affected by the collapse of the co-operative.

It is believed well over 1,000 NFU dairy farming members will be affected after DFB went into receivership last week.

“It was crucial that we met with PWC and DFB at the earliest opportunity. We had a long list of questions, some of which will have to wait to be answered – including how did we get here? Where has the money gone? And why did things go so wrong?

"However, today’s meeting was about ensuring the smoothest transition through this situation and clarifying specific technical and legal points that have been raised by our members.

“I remain extremely concerned that some farmers with small volumes or in remote locations could end up with no buyer for their milk. The NFU is working very hard to ensure that as many farmers as possible are able to find suitable homes for their milk.”

NFU deputy president Meurig Raymond who has written to the largest agricultural banks to assist in helping producers overcome any immediate financial difficulties said: “I am convinced that the majority of the farming businesses that are affected by the collapse of DFB have a bright long-term future.

"However, the immediate situation is characterised by uncertainty, instability and, for many, significant short term cash flow implications. I am keen to learn what arrangements the banks are likely to put in place to assist those affected.”

One of the first to pledge support was Barclays.The bank says it is proactively contacting affected customers to offer reassurance and a financial support package, including repayment holidays on existing and new loans and appropriate extension of overdraft facilities.

Tim Seeley, the bank’s head of agriculture, said: “We appreciate that this will be a worrying time for those supplying Dairy Farmers of Britain. We are currently speaking to all affected customers to reassure them that we will do our utmost to provide them with the tangible support they need to help to keep them in business.”