Deal to save creamery within days

DFOB is responsible for 10% of UK milk production

A deal to save 160 jobs at a Denbighshire creamery is expected to be concluded within days.

There were fears for the Llandyrnog factory after the co-operative Dairy Farmers of Britain (DFOB) went into receivership last week.

However, dairy products business Milk Link has agreed to take over the plant and the deal is expected to be completed by Friday 12 June.

The search is still on for a buyer for DFOB's plant in Bridgend.

The cooperative went into receivership after losing a lucrative supermarket contract and was struggling to pay its 1,800-member farmers a competitive price for milk.

Recruitment meetings

Ruthin Farmers Auction Mart, Monday, 1200 BST

Royal Oak Hotel, Welshpool, Monday, 1930 BST

Garstang Country Hotel & Golf Club, Lancashire, Monday, 1930 BST

Hunters Lodge Hotel, Crewe, Cheshire, Tuesday, 1930 BST

The Bluebell, Tissington, Derbyshire, Tuesday, 1930 BST

Receivers Pricewaterhouse Coopers are trying to find buyers for the business.

Neil Kennedy, Milk Link's chief executive, confirmed the proposals for Llandyrnog, adding: "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."

Milk Link is recruiting farmers to supply milk to the creamery and a series of meetings were being held on Monday and Tuesday.

A Welsh Assembly Government spokesperson said: "This is indeed good news and will safeguard jobs and secure future opportunities for milk producers in north Wales. We will continue to offer support and assistance in the finalising of this agreement.

"While this is good news we remain concerned about the future of the south Wales plant and we will continue to work with the administrators to assist with possible opportunities at the Bridgend plant."