Dairy co-op First Milk is looking ideally for more local milk for its Lake District Creamery at Aspatria – and its contract with Nestle at Dalston.
The boost to the county’s agricultural industry comes as the co-op announced it would be paying its 1,000 farmer-owners for a fortnight’s missed milk payments which were deferred in January 2015.
The payment will be combined with the producer’s standard milk cheque due today, meaning members will receive six weeks of money.
Ainstable producer Robert Craig, one of seven people appointed to the co-op council as part of a leadership shake-up, said Nestle and Aspatria were “open for business”.
“The business is definitely in the market for recruiting more milk volumes. Because of natural wastage and people retiring, ideally we would like to see more local milk to go through Aspatria,” said Mr Craig, who supplies milk through First Milk to Nestle.
“Things are very good. First Milk is looking very attractive. It is a really good business.”
First Milk took the decision to defer producers’ payments to plug a £10m black hole in its finances, following record £22m losses that resulted from a drop in dairy prices and the collapse in value of cheese stocks.
Following the decision, First Milk appointed new chief executive officer Mike Gallacher in March 2015.
He implemented 41 recommendations from an external analysis.
Mr Craig added it was difficult to predict the future.
“The dairy industry has recovered, but not back up to where it was two years ago.
“The heat has been taken out of the market and the market is tighter for milk. Values will rise.
“It is still positive for milk price rises from all our dairy companies.”
In December 2016, the co-op announced profits before tax of £6.8m in the six months to 30 September, compared to a £2.4m loss in the same period last year.
Bank debt fell by £20m to £26.1m.
Source: InCumbria
Link: http://www.in-cumbria.com/Milk-co-op-on-the-lookout-for-more-producers-8634eca2-2989-4ba8-b05a-f5ebab507170-ds
