What the receiver has told DFoB farmers
Stephen Oldfield, one of the team of PriceWaterhouseCoopers receivers and managers appointed to manage Dairy Farmers of Britain, has written to milk suppliers offering them the chance to take their milk elsewhere.
Talk about the demise of DFoB with other producers on our forums Read Phil Clarke’s Business Blog on how the banks should treat DFoB |
In his letter to farmers Mr Oldfield said: “A dedicated website www.pwc.co.uk/dfob and telephone number 08700 108181 has been set up to provide updates to milk suppliers and provide answers to frequently asked questions.
“Under our appointment, and as agents of the Company, all milk supplied after the date and time of our appointment as Receivers and Managers will be paid for by the Company.
“The Receivers and Managers are currently ascertaining the exact financial position of the Dairy Farmers Group. The Company will pay for all milk supplied since the date and time of my appointment; however, given the present circumstances, the price (in pence per litre) for the supply of milk cannot be guaranteed.
“In recognition of the hardship the appointment places on suppliers, all milk will be paid for on a twice-monthly basis. The first payment will be on 19th June 2009 for all milk supplied in the initial two week period.”
Contracts
“Given the financial predicament of the company, I write to offer you the opportunity to terminate your supply to Dairy Farmers of Britain immediately. Should you elect to supply to a different purchaser you will not be required to give any notice. However, if you choose to change purchaser this must be communicated in writing to Nantwich within ten days of the receivership appointment and prior to any such purchaser commencing collections of your milk.
“Please continue to use your usual methods of communication with Nantwich i.e. telephone followed by facsimile, email or letter confirmation. Please note that if you do not advise us of a change of purchaser in writing, Dairy Farmers of Britain will continue to collect your milk and you will not be able to sell it to your new purchaser. You will still be obliged to inform the relevant authorities of any change in purchaser.”
Read the full text of the letter
DFoB member? Distressed or troubled about what the news might mean for your business? Don’t suffer in silence – www.farmcrisisnetwork.org.uk