Farmer owned dairy processor Amelca has called in the receivers three months after it opened for business at a state-of-the-art dairy in Dove Valley, Derbyshire.
The 200m litre milk and cheese processing plant was opened by DEFRA secretary of state Margaret Beckett and heralded as an example of producers investing in processing ­ a key recommendation in the Curry report.
But industry sources said its collapse was a salutary tale of the pitfalls of vertical integration. One dairy processing source said: "If you are a new entrant to this market, you've got to buy your way in and build critical mass within a strict timescale before the money runs out."
Although the site is very hi-tech, dairy companies will be reluctant to buy a plant that offers capacity, but not new business, he added.

{{NEWS }}