First Milk has confirmed that the A price increase for January will be 2ppl.
This is the seventh milk price increase in a row and reflects both the improvement in market returns and the performance of the new First Milk business.
Mike Gallacher, CEO commented: “We are very aware of how challenging the market downturn of the last two years has been for our members.
“It is good to see the new First Milk now able to provide a competitive return, with much more that we can still do to continue to improve our own performance. We see a much better year ahead for our members.”
Chairman Clive Sharpe said: “Our milk prices have now risen by an average of 10ppl since June and market signals continue to point to some further improvements in early 2017. On this positive note we wish our members a very happy Christmas and New Year. We look forward to making more progress in 2017.”
Improved returns
This month, First Milk, the UK's only major dairy company owned by British farmers,released its latest mid-year financial results (for the six months to 30 September 2016) showing progress in operating profits and driving improved returns to members.
Interim mid-year financial metrics showed: Operating profits up to £9.2 million (vs. £1.2m in the prior year); Profits before tax were up to £6.8 million (vs. a loss of £2.4m in the prior year) and bank debt had fallen to £26.1 million (vs. £46.1m in the prior year).
Over the last twenty months First Milk has undergone a radical transformation, with a new business strategy, the divestment of loss making subsidiaries, improved operational performance and a more effective co-op governance structure. To date the programme has delivered a £33m improvement in business performance.
