With effect from 10 February, the deferral of member payment terms made at the end of 2014 will be reversed. Payments to members on 10th of February will be a double payment. This means members will receive six weeks money during February.
Since early 2015, First Milk has undergone a radical transformation. It has a new leadership team, a new business strategy, improved operational performance, is free of loss making subsidiaries and has established a more effective governance structure.
Giving his reaction, NFU dairy board chairman Michael Oakes said: “This latest announcement from First Milk is positive, particularly on top of the February announcement of a price increase. First Milk members have been through a really difficult time and have stuck with the processor through thick and thin. It is therefore great to finally see the deferral of member payments from 2014 reversed.”
Clive Sharpe, Chairman of First Milk, said: “This move sends a clear signal on the progress made by First Milk and returns our payment terms to normal for our members The Board recognises the huge role members have played in the turnaround of their co-op, and thank them for their continued support.”
First Milk CEO, Mike Gallacher, added: “Returning to our previous payment terms draws a clear line under the turnaround process for First Milk. We now need to concentrate on the future.
“First Milk is a very different to the business of early 2015. We are a lean, focused and financially secure business capable of delivering a competitive milk price for the long term.
“We have only been able to deliver the huge changes at First Milk because of the support of members. The business can deliver more for members and we will now get on with that.
“The role for a scale British Dairy Co-operative is even more compelling post Brexit and we aim to demonstrate this in the years ahead.”