First Milk progress funds dividend payment

Press information:  16th March 2012

As a result of the margin made on a number of business activities, including their international contract and efficiencies gained from investment in its manufacturing sites and supply chain, First Milk will pay a dividend to members in April.

An average 1 million litre producer will receive a dividend of £900, and this comes on top of the returns on investment for the same average 1m litre producer of £2700 over the last 14 months.

The First Milk Board also plans to allocate a proportion of the profit made on the recent sale of Wiseman shares to member capital accounts, and they are currently investigating the most tax efficient way to do this.

These decisions do not impact on any potential return on members investments for the 2nd half of 2011/12 milk year, which will be decided separately once the year end numbers are finalised.

First Milk chairman Bill Mustoe commented, "Over the last 14 months we have made 3 returns on member investments and are now announcing a dividend and plans to allocate money to member capital accounts.

"Building a business and a supply chain that is centred squarely on delivering for members is what we're about, and that's obviously a different path to other companies in our sector. We will continue to pass back returns to members if and when the money is in the till."