Receivers called in at UK dairy plant

- Last updated on GMT

Related tags: Dairy processors, Milk

Amelca, one of the UK's newest dairy processors, has gone into
receivership just three months after opening its first plant in
Foston, Derbyshire.

Amelca, one of the UK's newest dairy processors, has gone into receivership just three months after opening its first plant in Foston, Derbyshire, according to a report from Connecting Dairy News.

The Bank of Scotland, a major investor in the plant, refused to lend more money to the company, which had spent £20 million (€314 million) since the business was set up in May 2000.

A source close to Amelca said that investors were unhappy that the milk and cheese plant had not attracted contracts from major multiple retailers and that the processor was not achieving its target capacity of 800,000 litres per week.

However, he said that Amelca was aiming to achieve that figure within three years. Amelca had always said that it could not compete with major existing processors to supply multiple retailers.

According to another source, the news has come as a devastating blow to the company, and at a crucial time in its development. The source stated that four new contracts had come in during the past three weeks.

The £19 million (€29.7 million) Amelca plant is one of the most modern in the UK. Major UK processors, including Arla and Express Dairies, are already thought to be interested in acquiring the site, which has a large plot of adjoining land with planning permission for expansion.

Reports suggest that rival processors, including Express Dairies, have begun to collect milk from Amelca's suppliers.

Related topics: Manufacturers

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