Updated: DFB’s Llandyrnog goes to Milk Link

The agreed deal is expected to be concluded by the end of next week, and DFB producers are to be offered two options on the contract price to supply Milk Link.

The straightforward price is 23.5ppl. But there is an option to receive 22p for 12 months, in exchange for having the milk they produced in May, paid for by Milk Link on the due date at 18ppl.

“It is effectively a loan to help those people who need it for their cash flows,” said DFB member representative Stephen Yates working with the receivers.

Final agreement of the sale, when ratified, will secure the future of the award winning Welsh cheese creamery, safeguarding jobs and providing a secure outlet for milk produced by approximately 300 farmers, according to Milk Link.

Neil Kennedy, Milk Link chief executive, said: “This is great news both for Milk Link and the loyal staff and farmers who are at the very heart of the Llandrynog Creamery.

"The acquisition of Llandyrnog will complement our existing market leading cheese business and we believe will deliver, over time, substantial business benefits.”

Earlier on Friday, DFB managing receiver Stephen Oldfield of PriceWaterhouseCoopers had already said some deals could be concluded within days and others within weeks.

The sale of the Lubborn creamery would be conducted outside of the receivership he confirmed.