Reflecting the strong performance of the business in 2007/08, the Board has agreed that a sum of £1.85m will be shared among members in the form of a processing interest payment.
As an example, a million litre a year producer who has been contributing since December 2004 would receive a payment of just over £1000. Payments will be made on 25 July.
Commenting on the payment, Peter Humphreys said: “When we purchased the cheese and ingredients business in October 2006, we said that our intention was to make a processing interest income payment within three years. I am pleased that we have been able to pay out well ahead of schedule.
“While members will undoubtedly welcome this move, two important things must be borne in mind.
“Firstly, this processing interest payment is only one part of the broad capital structure proposals that we have been consulting on through Local Representatives, discussion groups and the wider membership that will take to the AGM for a full member vote.
“Secondly, this move is totally separate from negotiations we are having with customers to pay more for the milk and cheese they receive. We are absolutely clear that we need a significant milk price increase in the short term to cover rising on-farm costs to make our members better off with First Milk.”
