FDBusiness.com

First Milk, the UK’s only major dairy company owned by British dairy farmers, has released annual results for the year to 31 March 2013, as well as for the six months to 30 September 2013. The two reporting periods show a contrasting picture. The results to 31 March delivered a total pre-tax loss of £7.8million, with turnover down £40million to £530million. In comparison, the results for the six months to 30 September show pre-tax profits up to £1.1million, and turnover up £41million to £280million.

First Milk chairman Bill Mustoe comments: “We are well aware of the impact that 2012 has had on farm accounts over the last eighteen months, and from analysing other dairy processor results over the last few weeks, it looks like last year was a challenging one for most in the dairy industry. However, our performance in the six months to 30 September demonstrates clear progress on our strategy, and makes us confident about our ability to increase returns to members in the remainder of the current financial year.”

First Milk chairman Bill Mustoe.

He continues: “We are concentrating our spend on fastest growing markets like exports, foodservice and lifestyle nutrition; developing new products like Lake District Dairy Company Quark and Frumoo that move us up the margin ladder; exiting unprofitable, uncompetitive and non-core categories and markets; building our nutritional expertise; ensuring everything we do drives greater value for our farmers’ milk. None of these activities individually is going to be a silver bullet. However, add them all up and we’ve got a stream of returns that is better, and more robust, than what we had before.”

Bill Mustoe concludes: “Five milk price increases in the last six months and a record-breaking return on capital, are a clear signal of the progress being made. We will look to further increase returns to members through the remainder of this financial year.”