September 2, 2010

First Milk suppliers to get more profit

First Milk suppliers will receive an increase in the price they are paid for their milk from next month.

The co-op has confirmed that the standard litre price for each of its milk pools will increase by 0.25p/litre from September 1. The price for its liquid pool will rise to 23.63p/litre, while the cheese and balancing pool increases to 23.27p/litre.

First Milk said the increase was being funded by a reduction in its cost base as a result of a "continued drive on efficiencies".

Earlier in August the co-op announced a significant improvement in its financial performance, with a pre-tax profit of GBP360,000 (US$554,328) in the year to March 31, 2010, compared with a loss of almost GBP10 million (US$15.40 million) the previous year.

"Since the start of 2010 we have increased our standard litre price for the liquid pool by 2.23p/litre, while the cheese and balancing pools have seen a 2.17p/litre increase. We have created momentum within the business and will continue to focus on reducing overhead costs and improving market returns," chairman, Bill Mustoe, said.