First Milk announce £22m losses

Published 19 June 15

First Milk has today (19 June) announced that the losses for 2014/15 financial year will be around £22m. Commenting on the financial results, the cooperative has said the losses are due to three issues: the extreme drop in global dairy prices, paying too much for their milk and poor operational performance.

First Milk will have been hard hit by the 43% drop in the value of skim milk powders as it processed almost one-fifth of its milk through Westbury over the year. As stated at its January AGM, higher than anticipated production by its members led to this increased reliance on powder.

The figures represent pre-tax losses and are presently unaudited. The business is currently going through a full strategic review and has begun to implement a ‘turnaround programme’ which includes directly linking milk prices to market returns. Details of the new milk pricing policy can be found here.