Hilary Benn has rejected calls for a government inquiry into the collapse of Dairy Farmers of Britain.

The environment secretary said there was no need for an inquiry following an Early Day Motion by Labour MP Lindsay Hoyle last week calling on the government to look into the decisions and performance of the defunct dairy co-op.

The EDM, which gained five other signatures, also demanded that the role of the banks and the receivers in DFB’s collapse be examined and asked the Commons to note the financial hardship experienced by many dairy farmers that was caused by the group’s receivership.

Benn told the Commons that 1,759 out of 1,800 DFB farmers had now found a new customer. The co-operative’s members are estimated to have lost a total of £83m.