AUSTRALIA &#8211, Kiwi Co-operative Dairies lost almost 200,000 litres of milk last week when insulated wagons derailed on a bend in the track between Maxwell and Kai lwi, north west of Wanganui.

The fire service was able to recover more than 400,000 litres of the 600,000 litres on board by pumping it into nearby tankers. The remaining milk was then transported to the Kiwi Hawera site and duly processed.

Ten out of the 12 insulated wagons carrying milk were derailed. An investigation into the cause of the accident is now underway.