A total of 90 farms in the UK are facing a crisis after milkbuyer and processor Farmright went into administration, owing a total of £5 million to farmers. Four subsidiaries of Farmright have called in administrators, leading the group to declare an end to its milk handling business.  

The Devon-based company, whose subsidiary Quadra Foods is famous for producing Dairystix milk sachets, went into administration last week. As a result of money owed, processor Dairy Crest was forced to notify the stock exchange that it would be increasing its bad debt provision.

The farmers affected by the collapse, most of whom are in the Midlands and South-West, who are owed thousands of pounds each, have been forced to scramble to secure new contacts. Chester-based Meadow Foods announced it had taken on 35 former Farmright producers in Staffordshire and Derbyshire.  

The Royal Agricultural Benevolent Institution (RABI) has also announced that it has been contacted by farmers affected by the Farmright collapse. The charity said it is offering confidential financial support for affected farmers. Chief executive Paul Burrows said, "We know from bitter experience how devastating the sudden loss of income can be, particularly for family dairy farms for whom cash flow is critical."

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