Westbury Dairies has signed a deal to lease its troubled milk processing plant in Westbury, Wiltshire.

Three co-operatives Dairy Farmers of Britain, First Milk and Milk Link will takeover the plant, with each investing between £1m and £2m and will also supply milk year-round.

Westbury’s 236 contracted producers will continue to supply milk.

A Westbury spokeswoman was delighted that the group would “stay in farmer control”.

NFU milk chairman Terrig Morgan said: “Considering the situation little more than two months ago, this is a very good result for all the producers involved and for the industry in general.”