The new organisation, Dairy Farmers of Britain, will start trading on July 1 and handle 20% of the UK's milk, supplying all the country's biggest dairies. It believes greater efficiencies in haulage and administration should bring Â£6m cost savings in its first year. Milk price and contract harmonisation will be complete by April 2003.
Former Milk Group chairman David Stern will chair Dairy Farmers. He said: "We are confident that Dairy Farmers of Britain marks a significant turning point in the UK dairy industry."