The FINANCIAL — Barclays has on June 8 pledged its full support to dairy farmers following the announcement by Dairy Farmers of Britain that it is to go into receivership.
The bank is proactively contacting affected customers to offer reassurance and a financial support package, including repayment holidays on existing and new loans and appropriate extension of overdraft facilities, which will provide the breathing space they need to deal with both the immediate and any potential longer term impacts.
Tim Seeley, Head of Agriculture at Barclays said: “We appreciate that this will be a worrying time for those supplying Dairy Farmers of Britain. We are currently speaking to all affected customers to reassure them that we will do our utmost to provide them with the tangible support they need to help to keep them in business.”
The detailed implications of the Dairy Farmers of Britain’s announcement are not yet clear, however, the receiver’s intention is to initially continue trading and to collect and distribute as much of its members’ milk as possible.
Tim adds: “Farmers have had to write off all milk delivered from 1st May until this week which will affect cash flow and profit significantly. However it is reassuring to hear that the DFOB will continue to trade and farmers can now expect payment for milk collected after 3.00pm on 3rd June. Milk production in the UK is at historically low levels and most processors are keen to secure additional supplies. It is likely therefore that, if it does become necessary, most farmers will be able to find an alternative buyer for their milk.”
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