First Milk Pays Out Processing Interest Payment

Reflecting the strong performance of the business in 2007/08, the First Milk Board has agreed that a sum of £1.85 million will be shared among members in the form of a processing interest payment. As an example, a typical million-litre producer will receive a payment of just over £1000. Payments will be made on 25 July.

Peter Humphreys, First Milk's chief executive commented:

"When we purchased the cheese and ingredients business in October 2006, we said that our intention was to make a processing interest payment within three years. I am pleased that we have been able to start paying out well ahead of schedule.

"While I am sure that our members will welcome this move, two important things must be borne in mind.

"Firstly, this payment is only one part of the broad capital structure proposals that we have been consulting on through our membership over the last few months. All members will vote on these capital structure proposals at our AGM in November.

"Secondly, this payment is related to the performance of the business in 2007/08. Therefore this is completely separate from the current price negotiations that we are having with customers to pay more for the milk and cheese they receive."

For further information please contact:

Paul Flanagan
Group Communications Director, First Milk

Direct dial: 0141 847 6789
Mobile: 07767 241452