Challenge's Boyanup operation closed

The receiver of Challenge Australia Dairy has closed the company's Boyanup operations because the dairy doesn't have a supply of milk.

Derrick Vickers from PwC said that they had been advised by Challenge Dairy Co-operative that it can no longer supply Challenge Australia Dairy anymore.

Challenge Dairy Co-operative made known earlier this week it planned to call in voluntary administrators.

"Until this point the dairy had been receiving reduced quantities of milk from the co-op meaning we were able to continue limited operation and the employment of the majority of the dairy's staff," said Mr Vickers.

"Unfortunately because we no longer have a milk supply, we cannot continue to operate the Boyanup plant and have been left with no choice but to make nine employees redundant," he said.

"Since being appointed Receivers and Managers we have worked hard to keep the plants operational, but without milk, the dairy simply cannot operate," said Mr Vickers.

"We appreciate that this is a very difficult time for all employees and we will work closely with them and the state government to provide assistance and support," he said.

On Tuesday, Challenge Dairy Cooperative signaled to the Agriculture Minister Terry Redman its intention to go into voluntary administration.

Challenge Australia Dairy is jointly owned by Challenge Dairy Cooperative (51 per cent) and Singapore company QAF Ltd (49 per cent).