United Milk hopes to sell the plant as a going concern

Three farmers' co-operatives, Milk Link, Dairy Farmers of Britain and First Milk are trying to work out a rescue package to keep the United Milk plant at Westbury in Westbury running.

About 100 jobs are thought to be at risk if the plant, which has an annual turnover of �100m, closes.

Between 200 and 300 farmers supply milk to the �45m plant, which was built in 2001, and they say they have not been paid for the past six weeks.

Going concern

PricewaterhouseCoopers (PwC) has been appointed as administrators, and it is hoped that the plant can be sold as a going concern.

Rob Warren, chairman of the National Farmers Union's South West Regional Dairy Committe, said: "Our main concern is for the farmers who supply the plant and who have lost 45 days' worth of milk costs, in the region of �30,000, and then for the investing members and staff at Westbury.

"But next we have to look at how the business can be re-invigorated and taken on to provide a good service for milk producers and customers."

Mr Warren said there was little chance of compensation for shareholders or suppliers, but added he was hopeful an agreement could be reached to save the plant.