This is according to the Free State Chairperson of the Milk Producers' Organisation Chairperson, Gideon Lamprecht, who says dairy farmers affected by non-payment were informed of the debt rescue process via a letter.

He says affected farmers had been considering pursuing possible liquidation options to recoup outstanding payments but that this cannot proceed until the debt rescue process has run its course.

Another farmer, who is owed in excess of R1,5-million, has also confirmed receipt of the letter.

Montic Dairy earlier this year announced the closure of its depot in Clocolan at the end of September. The closure went ahead, leaving producers without a buyer for their milk. Added to this, dairy farmers claim they have not been paid for milk delivered from mid-July until the depot closed end of September.

Lamprecht earlier told OFM News the 35 farmers whom the organisation is attempting to assist are owed a collective amount of about R10-million. 

OFM News has tried repeatedly to get comment from Montic on the situation to no avail.

Sabrina Dean/OFM News