Farmers released from contracts with Pensworth Dairy

Producers supplying Braeforge, trading as Pensworth Dairy, have reportedly been released from contracts with the milk processor.

About 10 producers have been affected, according to milkprices.com. However, it is believed most of these have now been picked up by other processors, including Cotteswold Dairy and Freshways.

The company previously announced in its strategic report that it had been working to move away from being a dairy manufacturer to focus more on its food-service operations.

See also: Farmgate milk prices expected to fall further during spring

It had made a loss before tax of £632,880 for the year ending 26 June 2021.

Pensworth Dairy was due to pay a milk price of 47p/litre in January 2023, for 4% butterfat and 3.3% protein.

Its largest customer, Kent Dairy, which accounted for about 70-80% of its liquid sales, was purchased by Freshways earlier this month.

Bali Nijjar, managing director at Freshways, said: “When it was announced that we had purchased Kent Dairies, Braeforge/Pensworth immediately announced it was ceasing trading.”

Mr Nijjar said the firm had been asked to pick up one farmer’s milk and the company will be compensating him for any milk he has lost that cannot be recovered from Pensworth.

Freshways will continue to run Kent Dairy as a separate entity.

Pensworth Dairy has been contacted to provide a comment.

Farmers Weekly would like to hear from any producers who may have been affected by this. Please email charlie.reeve@markallengroup.com.