Deal reached on milk plant

A total of 100 jobs are be at risk if the plant closes

The future of the UK's largest milk processing plant may have been secured after a deal was struck between milk producers and the plant's receivers.

United Milk called in Pricewaterhouse Coopers as receivers in August after its Westbury plant in Wiltshire ran out of money.

A consortium of milk producers now say they have negotiated a basic deal to keep the plant running.

Westbury Dairies Limited, the company set up by the consortium, is aiming to finalise contracts within the next two weeks, but has already issued new payment terms for suppliers.

We have developed a business plan... which provides the plant with a commercial future The consortium

It is also offering an interest free loan to cover outstanding payments for anyone who takes up a contract.

A joint statement from the consortium which is made up of Milk Link, First Milk and Dairy Farmers of Britain, says: "Working together, we have developed a business plan for the Westbury factory which provides the plant with a commercial future and offers farmers access to intervention markets."

£100m turnover

About 300 farmers are said to be owed more than £30,000 each for the milk they supplied to the creamery.

Others risk losing a share of the £12m they invested in the co-operative when it was established in 2001.

The £45m plant uses modern technology to turn milk into butter and milk powder.

About 100 jobs are thought to be at risk if the plant - which has an annual turnover of £100m - closes.