Legal threat as dairy firm seeks milk suppliers

A Dairy ingredients group is hoping to exploit market uncertainty by recruiting wavering milk suppliers in North Wales.

Meadow Foods is calling on dairy farmers to review their supply contracts in the wake of increasing instability in the milk sector.

It follows last week’s decision by Dairy Farmers of Britain (DFB) to cut 640 jobs, close two factories and reduce its milk price by 2p/litre – almost 4p below the national average.

DFB, worried about loss of critical mass, has in turn threatened legal action against producers who do not see out their supply contracts.