30 April 2008 - The Board of Westbury Dairies Limited has announced that agreement has been reached with its three joint venture shareholders (Dairy Farmers of Britain, First Milk and Milk Link) on the future of the company.
Dairy Farmers of Britain will exit from the Westbury Dairies joint venture as soon as practicable and its representatives will step down from the Board. First Milk and Milk Link will continue as shareholders of Westbury Dairies Limited and have agreed to underwrite the continuing fixed costs of the site.
This new agreement gives the two farmer-owned dairy co-operatives full control over the state-of-the-art Westbury powder and butter production facility. Both strongly believe that, in the light of the ongoing volatility in dairy ingredient prices and UK milk production, Westbury Dairies will not only provide them with the security of having full access to the UK’s foremost milk balancing facility but also that there is potential to develop the business.
Dairy Farmers of Britain have agreed a long term supply arrangement, which allows it to have limited access to balancing capacity at Westbury, thereby contributing to the ongoing costs of operating the site.
Commenting on the agreement the Board of Westbury Dairies said, “The new agreement secures the future of Westbury Dairies and its workforce. We believe that not only is this a good deal for all three parties but also is an important one for the UK dairy industry as a whole.”