Fears that farmers will have to throw away thousands of litres of milk after one of the UK's largest milk hauliers has reportedly gone into administration overnight.
Tanker drivers for Lloyd Fraser, which has a distribution centre in Four Crosses in North Powys, were reportedly told that the business closed down this morning (Friday, September 22) "without any warning to the employees".
"I'm out of a job unless another business takes over the contracts," one North Wales tanker driver said.
That's left some dairy farmers across Powys unable to have their milk collected today and there's uncertainty over whether another haulage company will step in to help.
Farmer’s Weekly is reporting that some of the country’s biggest dairy companies including Muller, Arla and Meadow Foods are making contingency plans for milk collections.
The County Times has asked The Lloyd Fraser Group for a response.
The Warwickshire-based company also has bulk liquid depots in Denbighshire, Chester and Pontypool.
Contingency plans
Farmers' cooperative Arla confirmed that it was making "contingency plans" for deliveries.
An Arla Foods spokesperson said: "Following receiving confirmation that Lloyd Fraser has today entered administration, our priority is to ensure our farmer owners milk continues to be collected.
"We can confirm that we have implemented contingency plans in the areas where Lloyd Fraser operates, which includes, Cheshire, North Wales, and Shrewsbury."
The company, which has a depot in Four Crosses, is one of Montgomeryshire’s biggest milk hauliers, operating as a contract haulier to some of the UK’s largest dairies including Muller and Arla.
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'Extremely sad'
Craig Williams MP said: “Today’s news that Lloyd Fraser has gone into administration is extremely sad. I will be working with partners to support the firm, and especially staff from Four Crosses who are directly affected.
“The company is one of the biggest milk hauliers in the area – Muller alone collects 1.2m litres of milk from Montgomeryshire’s dairy farms per day. Although the situation is at a very early stage, Russell [George MS] and I have been liaising closely with both Muller and Arla this morning.
"They assure me that contingency plans are already in place to ensure collections will still take place today and over the weekend, and that all of their milk producers will be paid.
“We will continue to work closely with the farming unions and affected companies over the coming days and weeks.”
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