The NFU has prepared a more
detailed Q&A
for farmers affected by the DFoB collapse, which it is updating as
more information becomes available. Click
here to go to the
NFU site
Here is a brief overview of the situation
What does the appointment of an administrator
mean?
Dairy Farmers of Britain
has gone into receivership. The business of DFoB is now being
managed by the receivers,
PriceWaterhouseCoopers, who will act as agents for DFoB. The
effect of the receivership is that the business will be run by the
receivers. This allows the receivers to try and sell the business
itself or parts of it.
Will my milk be collected?
The receivers say they hope to be able to collect and distribute
the majority of DFoB's milk for the foreseable future. The
receivers have said DFoB will continue trading.
Will DFoB/ the receivers pay me for my
milk?
The NFU says it has been told that milk suppliers will not be
paid for milk supplied in May or early June, before the receivers
were appointed. Industry organisations and farmers' representatives
are calling on the receivers to clarify this as soon as
possible.
If DFoB receivers admit they will not collect milk, FW
understands this could represent a 'repudiatory breach' of
contract, technically releasing members from their contracts with
DFoB.
The NFU says it understands that from 3 June, DFoB under
receivership management will buy milk from members at an unknown
price.
PWC receiver Stephen Oldfield is reported as saying DFoB members
producers would not "handcuffed" to their contracts.
"We will be issuing new contracts which will cover an initial
two-week period and will then be renewed on a rolling four-week
basis. Members have to make the choice to sign that contract or
find other processors to take on their milk," he said.
What should I do?
Farmers affected should examine their contracts carefully. FW
understands that, while contracts do still stand until a breach is
committed - such as DFoB failing to collect members' milk - farmers
could make arrangements with other milk buyers as it seems unlikely
a company in receivership would pursue farmers for breaching
individual contracts.
However, while the business is still trading and hopes of a
successful settlement remain, the receivers are urging
farmer-members to continue to support the co-op.
The NFU has prepared a moredetailed Q&Afor farmers affected by the DFoB collapse, which it is
updating as more information becomes available. Clickhere
to go to the NFU site
DFoB member? Distressed or troubled about what the news might
mean for your business? Don't suffer in silence -
www.farmcrisisnetwork.org.uk