First Milk is increasing the standard litre price it pays to producers in its liquid milk pool by 2.6ppl and by 1.25ppl for producers in its balancing pool.
Due to the fact that increased returns from the marketplace will be staggered over October and November, the company will move the liquid pool price in two stages: 1ppl from 1st October and 1.6ppl from 1st November. The balancing price will also move in two stages: 0.5ppl from 1st October and 0.75ppl from 1st November.
As a result of a solid trading performance in the six months to March 2012, the company will also pay out a 3% return on members' capital account balances in October.
When combined with the payment that members received in January (return on capital) and April (dividend payment), in 2012 alone First Milk is paying out a 9% return on investment for active and retired members. This equates to a return of £2700 across the year for an average 1 million litre producer.
Notes for editors
The price increase of 2.6ppl for producers in First Milk's liquid pool will lift their standard litre price to 28.65ppl. Producers in First Milk's balancing pool will see their standard litre price move to 27.35ppl as a result of the 1.25ppl increase announced today
About First Milk:
First Milk is the only major dairy company owned by British farmers. Through growing its brands and diversifying its product and customer base, it aims to create an added value food business, all with the singular aim of driving returns for its farmer shareholders.
As a business with a passion for innovation and sustainability, it is constantly seeking fresh ways of working with partners in the UK and overseas to drive pioneering solutions to industry challenges.
This work has been supported by rapid progress recently on launching new products, as well as through new acquisitions including its Glenfield site in Fife, and its sports nutrition business CNP Professional which it purchased in May 2012.
For further information on First Milk, please visit www.firstmilk.co.uk or follow the company on Twitter @first_milk