Thursday 21st August 2003
Dairy plant calls in receivers | |
|  | | It's hoped the United Milk plant can be sold as a going concern |
| | A huge milk plant in Wiltshire has gone into receivership, owing money to hundreds of farmers.
The United Milk plant was part-funded by dairy farmers themselves. |
|  | | Farmers in Devon are losing thousands of pounds a day after the UK's largest dairy called in the receivers.
Many had invested their own money in the United Milk plant at Westbury, which had an annual turnover of £100m.
Between 200 and 300 farmers are understood to supply milk to the plant, and they have not been paid for the past six weeks.
Built in 2001, the plant was the most modern of its kind in Europe, able to handle 5% of the UK's total milk production.
 | | The United Milk co-operative cost £45m to set up |
Farmers put a lot of their own money into the co-operative, which cost £45m to set up.
They are angry it took rumours to alert them to the first signs of trouble.
One dairy farmer, David Hubbart, told the BBC: "It came quite out of the blue. We were led to believe that the company was doing well.
"Now all of a sudden there is nothing there. Everyone is dumbstruck. I am owed £30,000 and am a shareholder."
PricewaterhouseCoopers (PwC) have been appointed as administrators, and it is hoped that the plant can be sold as a going concern.
Milk Link, a farmers co-operative based in Plymouth, is one of three other co-operatives taking part in talks to try and save the Westbury plant.
 | | Farmers are unlikely to be paid for milk already supplied. |
Joint administrative receiver Roger Marsh said: "We shall be holding urgent talks with suppliers over the course of the next few days.
"With their support we have the best chance to try and secure a future for the plant."
The National Farmers' Union (NFU) said it was shocked by the news and has warned it is unlikely farmers will be paid for the milk already supplied.
"This situation is deeply regrettable for all those involved," said NFU president Bill Gill.
"It is clearly important that an adequate supply of milk is now provided for the company going forward.
"I can assure producers that the NFU is in contact with all of the major parties involved and will be doing everything possible to secure the best outcome for dairy farmers."
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