Co-op consortium secures extra time for Westbury plant

Following discussions into the early hours of this morning with PriceWaterhouseCoopers, the appointed receiver for United Milk plc, the consortium of farmer-owned milk co-operatives has negotiated the continued supply of milk to the Westbury plant for a further week, while talks continue to secure its long term future.

The extension is subject to the continuation of supply from the United Milk plc farmers. The key elements are as follows:

• The receiver will continue to take milk from the United Milk plc farmers for a further week (i.e. until Friday 5 September).

• The receiver has agreed to increase the base price paid to the United Milk plc farmers from Saturday to 17.5ppl.

• Milk from consortium members will continue to be contract processed.

• The consortium has agreed to make a contribution to any trading losses incurred by the receiver for the next week.

• In return for this commitment from the consortium members, the receiver has granted open-book access to the consortium to the costs of running the Westbury plant, to assist with further discussions.

A spokesman for the consortium of farmer-owned co-operatives – Dairy Farmers of Britain, First Milk and Milk Link – said: "We are pleased that we have been able to secure the factory for a further week whilst dialogue with the receiver continues. We remain determined to secure a positive outcome."