In order to line up funding for more added value deals, the co-operative is also raising the amount of capital that its farmer members will invest in the business, plus exploring routes where its employees and farmers supplying milk to other companies, can also invest in its added value growth strategy.
The standard litre milk price paid to farmers in First Milk’s liquid pool will increase by 0.5ppl from 1 April. Producers in its cheese and balancing pools will see their standard litre price move by 0.4ppl from the same date.
In addition, the company is continuing its programme of regularly rewarding investment in the business and will pay out a 3% return on members’ capital account balances in April. Since 2010, First Milk has made two returns on investment to members each year, equating to an annual payment of £1800 or 6% for an average one million litre producer.
Having thoroughly investigated a range of added value opportunities, the co-operative is increasing the amount of capital that its members require to invest to 0.5ppl (lifted from 0.2ppl) from April.
Source: First Milk
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