First Milk is increasing the price for its manufacturing and liquid pools by 1 penny per litre from the 1st of November 2013. This moves the standard litre prices to 32ppl and 31.85ppl respectively.
These increases mean that price rises since April equate to 3.5ppl for First Milk's manufacturing producers and 2.7ppl for those in their liquid pool, in addition to an the 8% return on capital that has been paid this year.
In his letter to members, First Milk chairman Bill Mustoe commented,
"The work we are doing on the Lake District Dairy Company brand shows that we are hunting down every opportunity to drive returns for members. We've seen the launch of Quark and Frumoo over the last few months; we're now on television for the first time with the brand; we have introduced Red Leicester and Double Gloucester variants; and the Lake District range is back in Morrisons. All of these actions will drive added margin.
"Our international expansion plans are driven by a dedicated export team here in the UK and in Asia. The team now regularly host visitors from around the world, with guests from India with us last week. In all of this, it's not about chasing volume overseas for volume's sake; we'll do it if the price and the margins are right."
Finally, Mustoe hinted to members about more news shortly:
"I hope that you can join us at our AGM and conference on 31 October which will be held this year in Telford. You will not only hear more detail on our strategy, but also by then we will have further news about brand launches and partnerships that will drive us further forward."
About First Milk
First Milk is the UK's only major dairy company owned by British dairy farmers.
As a business with a passion for brand innovation and sustainability, it is constantly seeking fresh ways of working with partners across the supply chain to drive pioneering solutions to industry challenges.
This has been supported through the recent acquisition of added value businesses, by rapid progress on launching new products and securing new customers in the UK and international markets.
A copy of First Milk's sustainability report is also available to download via its website - www.firstmilk.co.uk/sustainability/