First Milk upgrades September price increase

In a letter to members today, First Milk chairman Clive Sharpe said:

"Last week I wrote to you regarding September milk price increases. Over the last few days there have been some announcements that have further boosted our returns. Rather than waiting until October to reflect these, we wanted to pass these on immediately.

"The adjusted price increases for September are now between 1ppl and 1.67ppl, which covers market moves and an additional 0.25ppl Business Supplement Payment due to stronger than budgeted business performance

"There will be further price increases for October. We will update members mid-month with our forecast, and confirm the level of the increase later in September.

"I hope these additional moves reflects our commitment that as the market continues to rise; so will our milk price. In addition, we will continue to deliver on the Business Performance Supplement commitment."

ENDS

Notes to editors

Table of adjusted September price moves by pool:

Milk pool

Adjusted Sept price increase (ppl)

Sept A price (ppl) Sept B price (ppl)
Mainland Scotland 1.29 18.02 20
Lake District 1.67 18.88 20
Midlands 1.00 17.19 20
Haverfordwest 1.67 19.91 20


About First Milk

First Milk's progress over 2015 and 2016 has included:

• Heavyweight commercial appointments;
o Including Clive Sharpe (chairman, ex Quorn Foods,  Burtons Biscuits, Duerr's jams, WT Foods, Golden Wonder and Homepride Foods), Mike Gallacher (CEO, previously UK MD of Mars Petcare and senior leadership positions within Mars Inc. Asia Pacific and Europe), Brian Mackie (chief operating officer, ex Starbev/Molson Coors Europe, Maxxium Worldwide, Cott Corporation), Carl Ravenhall (non-executive director, former MD of Müller Wiseman Dairies, Milk Link & Adams Foods) and Kenny Bain (group operations director, ex Unilever, ABF, Mars),.

• Significant cost reductions including;
o Improvements to quality, driving operational performance and an improved financial position
o Operating profits of c£5m were delivered for FY16, an improvement of £25m on the prior year
o Debt has also continued to reduce, and at the end of March 2016 was £33m, compared to £84m as at Sept 2014

• Full strategy review, which resulted in;
o A clear focus on the core businesses of hard cheese manufacture and liquid brokerage
o The sale of the Glenfield Dairy business based in Fife, Scotland to Graham's the Family Dairy in November 2015
o The exit of its joint venture in Westbury Dairies in January 2016.

• Wide ranging Governance changes including a smaller, more commercial Board and new Member Council

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, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands.

It is headquartered in Glasgow with five manufacturing sites across England, Scotland and Wales.

For media enquiries, please contact:

Paul Flanagan
M: 07767 241452
paulflanagan@firstmilk.co.uk

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