Former Dairy Farmers of Britain (DFOB) producers that switched their milk supply to Meadow Foods following the collapse of DFOB are to receive a share of a £750,000 early payment fund allocated by Meadow to support producer cashflow.
Meadow will be processing interim payments this week to farmers that have been left without milk cheques from DFOB for May, bringing forward normal payment terms by more than a month.
Simon Chantler, executive chairman of Meadow Foods, said: “Cashflow is the biggest issue facing former Dairy Farmers of Britain producers. Although it’s encouraging that many farmers have found alternative buyers for their milk, they face an extended payment void that is putting them under exceptional financial strain. We have taken the decision to bring forward payments to bridge the gap.”
Meadow Foods, the UK’s leading independent dairy group, is taking supply from more than 100 former Dairy Farmers of Britain producers following the co-operative entering receivership on 3rd June. It follows Meadow’s acquisition of Nene Valley Foods, a wholly owned subsidiary of Dairy Farmers of Britain Processing, in May.