Co-op creameries sold for £75m

DAIRY FARMERS of Britain has bought Associated Co-operative Creameries from the Co-operative Group for £75m.

The much-anticipated move was announced on Tuesday (Aug 10).

It confirms industry speculation that the farmer-owned milk co-op was about to make a major move into processing.

With an output of 1.3bn litres DFB now becomes the UK‘s third-largest milk processor, behind Arla Foods UK and Dairy Crest.

The news came on the same day that Arla Foods announced plans to build a £10million milk processing plant in Scotland .

ACC has  a diversified product portfolio ranging from fresh milk doorstep deliveries to processed milk desserts and drinks.

It is not yet known if DFB will be looking to keep the business in its entirety or concentrate on the most profitable sectors.

Rob Knight chairman of DFB said: “The deal allows us considerably more flexibility in terms of pursuing our growth plans.

“Both organically and through acquisition we are now able to expand our horizons to a much wider range of options.”

For more information and reaction to the deal see the Business section in this Friday‘s (Aug 13) FARMERS WEEKLY.