Farmers get fast-track cash aid after the collapse of DFB

Jun 24 2009 by Karen Dent, The Journal

CASH help is being made available for farmers struggling after the collapse of Dairy Farmers of Britain (DFB).

NFU Mutual Charitable Trust has donated £50,000 to the ARC-Addington Fund to help former DFB farmers and the Royal Agricultural Benevolent Institution (RABI) is fast-tracking applications for financial help from DFB farmers facing hardship.

The co-operative went into receivership on June 3 and its Blaydon dairy, which supported around 600 jobs, was closed on June 12 after the failure of a management buyout bid. Efforts to sell DFB depots in Blaydon, South Shields, Benton, Team Valley, South Teesside, Bedlington and Carlisle also came to nothing.

“The problems at Dairy Farmers of Britain have not only left hundreds of farmers in dire financial straits and in need of immediate help but are also having a knock-on effect on the whole livestock industry,” said Sir Don Curry, chairman of NFU Mutual Charitable Trust, which was set up 11 years ago to support agricultural and rural charitable causes. “We hope this aid will help tide over badly-hit farming families and their employees until they can make alternative arrangements to supply their milk to other dairies.”

The money will be allocated in cash grants via the ARC-Addington Fund, which is a part of the Farming Help group of organisations.

DFB farmers will not be paid for the £19.4m of milk supplied during May and the first two days of June. Members have also lost £63.6m in capital investments in the co-operative. Around 1,800 farmers were affected nationally, including 288 in the North East.

RABI says it had received initial calls for help from 50 DFB farmers by the end of last week. Its emergency fund is helping with domestic expenses for those affected and has already made £12,000 available to six families.

Trish Pickford, RABI’s head of welfare, said: “While our obvious concern is the immediate relief to those in need we are aware that for many of those affected survival may depend on a change in the direction of their business.

“Where this involves training or qualifications that the farmer, or members of the family, cannot afford the RABI Gateway Project will be available as a possible source of financial assistance.

“In extreme cases in the past we have been able to turn round applications for help within 24 hours and could do so in this instance should the need arise.”

The RABI emergency helpline number (01865) 727888 is staffed during office hours with a message facility out of hours.

We hope this aid will help tide over badly-hit farming families and their employees.