Farmers quit dairy in payment row

Farmers from mid and south-west Wales supply Dansco

Twelve farmers have stopped supplying a Carmarthenshire dairy with milk because they claim that they are not being paid on time.

Another 18 have given mozzarella cheese producer Dansco notice that they also intend to send their milk elsewhere.

The Newcastle Emlyn-based firm, which employs 132 people, confirmed it has cash flow problems but said it was confident they will be solved.

It is supplied by about 140 farmers from mid and south-west Wales.

There have been complaints since April that the company has not been paying on time, and it acknowledged in a letter to the Farmers' Union of Wales (FUW) that it had cash flow problems in the summer.

The FUW said some of its members had now decided to stop supplying Dansco.

Dansco are not paying farmers on time FUW director Peter Davies

Union director Peter Davies said uncertainty over payment had forced farmers to make alternative arrangements. He said some were now sending their milk to a dairy in Anglesey.

"Dansco are not paying farmers on time," he said. "Sometimes they pay half on an agreed date and then half another time."

Mr Davies said farmers would happily work with the firm if it "treated them fairly".

Dansco director Tamer Soliman said it was correct farmers had sometimes not been paid on time, but added that they had not had to wait longer than 10 days.

"We have cash flow problems which are on the way to being solved," he added.

"I am disappointed because we have explained to them (the farmers) all along what the problems are."

He appealed to the remaining farmers to "stick with us at this time".