First Milk Announces Pre Tax Losses of £7.8 Million09 October 2013
UK - Dairy cooperative First Milk has announced a pre-tax loss of £7.8 million up to March 31 2013 and a pre-tax profit of £1.1 million for the following six months.
Turnover for the year up until March 31 dropped £40 million from £530 million whereas the six month period up to September 30 2013 showed a £41 million lift to £280 million.
First Milk has said the results show 2012 was a challenging year for the company, and most of the dairy sector, but that clear progress had been made in the six months up to September 30.
The farmer owned dairy attributed heavy losses to an unsustainable milk price following the Board’s decision to support members with a price not in keeping with market returns in the second half of the year.
First Milk chairman Bill Mustoe said: “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.”
He added that exceptional charges accounted for £7 million worth of loss of which $4.5 million was from losses at the Glenfield operation.
First Milk continues to be confident, concentrating on new products like Quark and Frumoo of the Lake District Dairy Company to add margin to products.
TheCattleSite News Desk