First Milk confirms the payment of its year-end, return on investment, to members.
A strong performance over the last six months of the financial year has enabled First Milk to announce a further 3% return on capital for its members.
In October 2013 we increased the return to 5%, so for this year the total return to our members on their investment will be 8%.
In addition to the above payment, the First Milk Board will pay a 5% return on members' preference shares.
These combined payments will see an average 1 million litre member receive £1200 in May. So together with the payment already made in October 2013, this will be equivalent to 0.25ppl of additional payments on top of the milk price for the year 2013-14.
Chairman Jim Paice commented:
"First Milk is on its strongest footing for many years.
Our strategic partnership with Adams Foods is now up and running. This not only provides a secure home for our cheddar in the UK, but importantly means that we can refocus our efforts onto areas such as exports and our newer added value products such as Lake District Quark.
We are also investing in all our sites to increase capacity and reduce production costs, as well as meeting the requirements of our customers.
As a Board we are excited about the prospects for both our industry and our business."
Notes to editors
About First Milk
First Milk is the UK's only major dairy company, 100% owned by British farmers. It supplies a wide range of dairy products and dairy ingredients to customers in both national and international markets including block cheeses, soft cheeses, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands.
It generates annual revenues of £530 million (2012/13 figures) and is headquartered in Glasgow with eight manufacturing sites across England, Scotland and Wales employing a total of 667 people.
First Milk's aspiration is to provide consumers with great-tasting nutritious food, while delivering value for every part of its farmers' milk. As a business with a passion for innovation and sustainability, it is constantly seeking fresh ways of working with partners across the supply chain to drive pioneering solutions to industry challenges.
For further information on First Milk, please visit www.firstmilk.co.uk or follow the company on Twitter @first_milk and YouTube www.youtube.co.uk/firstmilk1.
A copy of First Milk's sustainability report is also available to download via its website, www.firstmilk.co.uk/sustainability.
For media enquiries, please contact:
head of communications
M: 07767 241507
M: 07984 349936