Partners in Cheese says it will start building a new cheese factory in Cumbria as early as April.

The business said it no longer needed any money from Cumbrian milk producers and wanted to get going as soon as possible.

The plant will have the capacity to process 600m litres of milk.

Dutch businessman Ronald Akkerman, who fronts PiC, said he had enough financial backing from other investors, and farmers would no longer be asked to take a stake in the factory.

Instead, they would be offered a direct supply contract within the week, he said.

Halted abruptly

Due diligence on PiC’s plans being conducted by a steering group of Dairy Crest Direct members was halted abruptly earlier this week.

Mr Akkerman said the due diligence process would take too long. He said he also had little confidence that the 200 DCD members in Cumbria could come up with the £8m needed.

The farmers currently supply the Aspatria creamery, which was sold by Dairy Crest to co-op First Milk last year.

Even if all the DCD members decided to sign up they would not be able to require all the milk that he required, added Mr Akkerman. He said he was confident that he could source additional supplies from elsewhere.

Disappointment and relief

It is believed that Dairy Farmers of Britain, which has a milk field of about 300m litres in the region, would supply the extra milk.