Digging to unearth the reasons for DFB insolvency

Following what was a fairly sombre but well attended members' meeting in Carlisle today (Friday, June 5) - the first of three successive day's meetings – managing receiver Stephen Oldfield of PriceWaterhouseCoopers told Farmers Guardian part of his role was to examine just what had gone wrong and when.

And any members who have a specific area of concern which they feel contributed to the insolvency of the business – and can support it with evidence – were invited during the Carlisle meeting, to submit that evidence.

Mr Oldfield said it was clear much of it was down to losses in the liquid milk business. But his role was to dig down further and see why. The creditors' meeting would also include a report on the first three months of receivership.

However, he stressed it was vital minds were focussed on the future and the need to accomplish the task in hand.

Part and parcel of that process was a clear knowledge of what volume of milk was available.

“We need to know those people who need their milk collecting and who is left after the shakeout,” said Mr Oldfield.

And DFB member council chairman and Shropshire farmer Stephen Yates, who is now working alongside the managing receiver in a producer representative role, urged them not to be panicked into anything, warning there could be some businesses out to profit from DFB members' plight.

He also said he hoped the 'froth and gossip' would stop. It was needlessly putting downward pressure on the spot market value of milk to the disadvantage of everyone in milk production.

Mr Oldfield said he had no idea at this stage what price he would be able to pay for DFB members' milk in the short–term.

“I am margin-managing so it is important for me to get the best I can get (from customers),” he said.

“I want to make sure the milk keeps flowing from the farmgate to the shelves,” he said, assuring producers that those who wanted to continue supplying on PWC short contracts would have their milk collected and would be paid for it.