Meadow Foods has acquired Fayrefield Liquids, the dairy division of Crewe-based Fayrefield Foods.
Fayrefield Liquids produces whole milk, skimmed milk, skim concentrate, and cream. The business is also building a portfolio of specialist milk products. These are traded throughout Europe.
The acquisition follows what parent company Fayrefield Foods describes as a major dispute over a contract with a customer that led to significant financial loss for both farmers and the company.
Meadow and Fayrefield already share integrated milk collections, and Fayrefield dairy farmers have been given the option to remain on current contracts or move over to Meadow Foods.
The milk supply will move over from Fayrefield on 1 September 2017, and the rest of Fayrefield Foods will continue unaffected.