May 21, 2012

Milk Link pays out US$53 million to co-op members 

This year, Milk Link, Britain's biggest dairy co-operative has to pay GBP33.7 million (US$53.3 million) to its 1,600 members, a 15.4% increase on the last 12 months.

But after the benefits of a GBP0.025 (US$0.04) per litre rise, the price paid for milk will fall by GBP0.015 (US$0.02) per litre from June 1 in what will remain challenging economic conditions, it said in a statement,

Announcing the lift in underlying profits on a 7.1% rise in group turnover to GBP628 million (US$993 million), chairman Ronnie Bell said: "We were able to reward the hard work and commitment of our dairy farmer members by both increasing the price we paid them for milk and by delivering a record rate of return on their investment in the business.

"In doing so, we not only made a positive impact on the livelihoods of our members but also, I believe, started to demonstrate the important role progressive, forward-looking, farmer-owned co-operatives such as Milk Link can play in building a vibrant British dairy industry."

He said it was "with great regret" that the price of milk is to fall. "We fully understand the financial burden this will have placed on our farmers, especially given the continuing high level of on-farm input costs," he said.

"As such, the board and senior executive team are committed to identifying further ways of maximising returns for our members."

Neil Kennedy, the co-op's chief executive, said: "Despite the current very difficult trading conditions, Milk Link remains positive about the long-term prospects for the dairy sector."