Chief Executive Don MorrisUNITED MILK: MILK bosses hailed the multi-million pound United Milk factory as a 'milestone for farming' when it was launched last year.

The state-of-the-art £45m factory in Northacre Industrial Park, Westbury was considered a welcome boost for the economy and began taking milk from local farmers last May.

But the dream soon turned sour after a difficult winter, dwindling profits and the resignation of the founder and chairman in January.

The factory became fully operational last August when it started processing milk powder and butter.

Cash for the ground-breaking project was raised through £11m investment from south west farmers and a £34m bank loan.

More than 400 dairy farmers joined the co-operative investing an average of £25,000 each and the factory was able to handle five per cent of the UK's total milk production.

Following the factory's launch, the farmer-owned co-operative was regarded as a big step forward in dairy farming and the biggest project of its kind in the country.

Last May Richard Ashworth, the former chairman, predicted a glittering future but it was not to be.

He said: "This is a milestone not just for UK milk but for the entire UK industry.

"This sends out a message that despite the difficulties in the UK farming industry United Milk farmers have been prepared to back their judgement and take the future into their hands."

But following a dark winter when prices for a litre of milk dipped below 16 pence Mr Ashworth, the founder and public face of the company, resigned.

A United Milk spokesman said at the time: "The man who gets the idea off the ground is not necessarily the same man to ensure it runs successfully in the long term."

Despite the tough times, United Milk, led by chief executive Don Morris, referred to the poor winter as 'a seasonal blip'.

Planners hoped the world-class facility would use one million litres of milk daily, rising to 800 million litres a year when the factory was fully operational, and predicted the plant would become the largest milk producer of its kind in Europe.

It was expected to churn out up to 40,000 tonnes of butter and 75,000 tonnes of skimmed milk annually and a state-of-the-art atomiser was installed last spring to produce high quality milk powder. But even the official opening of the plant was delayed last September due to a computer hitch.

Over the last 10 weeks local residents have complained about milk powder from a faulty extractor fan coating cars and homes.

And just five months ago fire crews were called to a blaze in a vacuum pump at the plant.

Jeff Osborn, town, district and county councillor, was economic portfolio holder two years ago during the planning process and backed the scheme.

He said: "The council bent over backwards to get this plant and company to move here.

"My greatest fear is that some foreign firm will move in and import milk from abroad."

Staff were treated to a royal visit in January when Prince Edward and the Countess of Wessex were given a guided tour.

United Milk took on 100 staff at its Westbury plant and relocated 25 office staff to its headquarters in Trowbridge last year.