Dairy farmer co-op Milk Link has agreed to sell its fresh milk business to Robert Wiseman for £5.5m.
The fresh milk arm comprises Peninsula Milk Processors and Newlands Farm. The co-op will continue to supply them and has also negotiated a long-term strategic supply agreement with Wiseman.
This will ensure that milk for Wiseman's south west operation is met by producers from the area.
Wiseman currently has 24% of the market in Great Britain and the deal is subject to OFT approval.
The three-year deal for Milk Link includes supply to the new Wiseman plant at Bridgwater. Phase two of the development, due to open in autumn 2007, will increase the capacity to 300 million litres, 60% of which will come from Milk Link.
The co-op says the deal will keep haulage costs down. The plant is close to the centre of Milk Link's production in the south west. It also wants to focus more on added-value products (see left). It retains a cheese plant at Tor Valley.
The fresh milk arm comprises Peninsula Milk Processors and Newlands Farm. The co-op will continue to supply them and has also negotiated a long-term strategic supply agreement with Wiseman.
This will ensure that milk for Wiseman's south west operation is met by producers from the area.
Wiseman currently has 24% of the market in Great Britain and the deal is subject to OFT approval.
The three-year deal for Milk Link includes supply to the new Wiseman plant at Bridgwater. Phase two of the development, due to open in autumn 2007, will increase the capacity to 300 million litres, 60% of which will come from Milk Link.
The co-op says the deal will keep haulage costs down. The plant is close to the centre of Milk Link's production in the south west. It also wants to focus more on added-value products (see left). It retains a cheese plant at Tor Valley.
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