FEARS have been raised that farmers will have to throw away thousands of litres of milk after one of the UK's largest milk hauliers has reportedly gone into administration overnight.

Tanker drivers for Lloyd Fraser, which has a depot in Chester, were reportedly told that the business closed down this morning (Friday, September 22) "without any warning to the employees".

"I'm out of a job unless another business takes over the contracts," one North Wales tanker driver said.

Chester and District Standard: Lloyd Fraser milk tankers at the distribution centre in Four Crosses, PowysLloyd Fraser milk tankers at the distribution centre in Four Crosses, Powys (Image: Chris Heaton/Geograph.org)

That's left some dairy farmers across Powys unable to have their milk collected today and there's uncertainty over whether another haulage company will step in to help.

Farmer’s Weekly is reporting that some of the country’s biggest dairy companies including Muller, Arla and Meadow Foods are making contingency plans for milk collections.

The Warwickshire-based company also has bulk liquid depots in Denbighshire, Chester and Pontypool.

Farmers' cooperative Arla confirmed that it was making "contingency plans" for deliveries.

An Arla Foods spokesperson said: "Following receiving confirmation that Lloyd Fraser has today entered administration, our priority is to ensure our farmer owners milk continues to be collected.

"We can confirm that we have implemented contingency plans in the areas where Lloyd Fraser operates, which includes, Cheshire, North Wales, and Shrewsbury."