A strong performance over the first six months of the financial year has enabled First Milk to announce its highest ever return on investment payment to members.
In recent years, the company has paid a 3% return on members' capital twice a year. This Autumn it will increase this return to 5%.This payment is worth £1500 to an average 1 million litre member and will be processed in October.
This follows a 3% return to an average 1 million litre member processed in April, adding up to a total of £2400 (or 8% return) that has been passed back to members during 2013.
Next Spring, the First Milk Board intends to pay a further return on capital plus a 5% return on the preference shares that were allocated to members last year linked to the gain on the sale of Wiseman shares.
First Milk chairman Bill Mustoe commented:
"This is the highest return on investment that we've ever paid and is in line with our aim to return additional money to members as quickly as it is generated in the business. Our focus is solely on our British farmers, we don't have private or overseas shareholders to look after.
"Over the last few months, we've secured good returns from our core sectors; we've launched a couple of great new brands in Lake District Dairy Co. Quark and Frumoo; and we've benefitted from moving milk to take advantage of strong powder returns.
"We've also invested behind the exports side of the business, with the set up of a dedicated, specialised team. These UK-based employees have now been joined by colleagues in Asia with the opening of our Hong Kong office recently. First Milk Asia has dedicated Mandarin speakers and we are already making good headway with turning leads in a number of markets into firm orders."
Notes to editors:
Since 2010, First Milk has made two returns on investment of 3% to members in Spring and Autumn each year, equating to a total annual return of 6%.
An average 1 million litre producer has around £30,000 in capital invested in First Milk.
Contact for more information:
Communications Executive, First Milk Ltd.
E: SachaBoljevic @ firstmilk.co.uk
DL: 0141 847 6786 | M: 07984 349 936