Spilt milk

 Took the opportunity at Business Questions yesterday of raising the issue of the collapse earlier this month of the Dairy Farmers of Britain (DFB) co-operative.  Many of my farming constituents supplied milk to the co-op’s Llandyrnog creamery and have lost thousands of pounds in vital cashflow:

Mr. David Jones(Clwyd, West) (Con): Will the Leader of the House arrange for the Secretary of State for Environment, Food and Rural Affairs to make a further statement to the House on the circumstances that led to the collapse of the Dairy Farmers of Britain co-operative and on what has happened since? Across the north of England and throughout Wales, more than 1,500 farmers are suffering as a result of not having received their full milk cheques for May. That demands a further statement from the Secretary of State. Will the Leader of the House urge him to make one as a matter of urgency?

Ms Harman: The Secretary of State will be answering questions in the House next week. Given that this has been such an important issue in many regions, I am sure that he will be able to account to the House for the situation then.

Many suppliers of the creamery find it hard to understand how, only a few short months before DFB’s failure, the co-op’s annual report could include the following remarkably sanguine statement:

The prospects for DFB are very promising indeed. We have a business model that is capable of sustainable growth, driven by advantaged positions with emerging customers as well as our key relationships with our existing estate and we will maintain a relentless focus on costs and efficiencies, thereby improving our margins in line with business plan expectations.

The failure of DFB demands further investigation, and I have tabled an appropriate oral question to the Secretary of State for answer next week.