500 jobs at risk if Blaydon dairy farmers' site closes

Jun 5 2009 by Katy Simpson, The Journal

MORE than 500 livelihoods will be on the line if a dairy site is forced to close.

The Dairy Farmers of Britain (DFOB) site in Blaydon, Gateshead, is under threat after the firm went into receivership.

DFOB is set to close its three UK sites due to the plunging price of milk across the globe, and the loss of a contract with Co-op, which accounts for half its workload.

Now it has emerged the Blaydon plant employs around 260 workers, with a further 288 farmers involved in the supply chain.

Dairy farmers have already been told they will not be paid for last month’s milk, and face the prospect of having to make a loss on their produce. And many are being warned they are still legally contracted to supply milk for the collapsed DFOB.

The National Farmers’ Union (NFU) is concerned the crisis has been complicated by the administrators’ instruction that farmers must terminate their contract in writing if they wish to start supplying milk elsewhere.

Policy adviser at the NFU, Louise White said: “It is a very sad day, we have had a lot of concerned dairy farmers on the phone. We are asking dairy farmers to check what their current position is to make sure that their milk is going to be collected. What we don’t quite know, is at what price.

“If they take the decision themselves that they want to get out, they will need to check their contractual position. They need to make sure they are not in breach of contract by doing that.”