Co-operatives the Milk Group and Zenith Milk, who announced their intention to merge in January, have confirmed that the proposed company is to be called Dairy Farmers of Britain.
Members of the co-ops are not due to vote on the deal until late May. If successful, Dairy Farmers of Britain will begin trading in July.
The merger has already cleared one major hurdle – it will not be referred to the UK’s Competition Commission – even though the new company will control 19% of raw milk supply in England and Wales.
Zenith Milk operates throughout the north of England and is one of three regional UK co-ops created by the break-up of Milk Marque in 2000. It produces 1.2 billion litres of milk annually, but is not involved in processing.
The Milk Group also produces 1.2 billion litres of milk per year but has moved into the processing market to try to add value to the co-operative’s members’ milk. In 1997, the Milk Group bought ingredients supplier Nene Valley Foods and in November 2000 it bought Lubborn Cheese for