First Milk has hailed a positive year’s trading despite volatile market conditions and high energy costs.
Accounts for the British farmer-owned co-operative reveal that its operating profit has remained stable at £5.1m for the year ended March 31.
Turnover for the year has increased by 38% to £456m up from £331m in the previous year and the average member milk price increased by 14.4p per litre.
This resulted in an additional £105m paid out to members during the year.
Rising milk prices increased working capital requirements, with the cheese stock value increasing by £32.5m, resulting in net debt rising to £63.9m against £43.4m in 2022.
Chief executive Shelagh Hancock said: “The last year has been tumultuous, with a roller coaster ride on milk prices and energy costs, creating challenges across the whole dairy supply chain, from farm to consumer.
“Yet, whilst these massively changing market dynamics have been challenging, the value we have in our secure contractual relationships meant that we were able to maximise the milk price paid to members as quickly as possible.
“Despite the volatile market conditions, our cheese business has continued to grow, we have completed a major investment at our Haverfordwest Creamery, and we have continued to progress our regenerative approach, receiving external acknowledgement of our progress through B Corp certification and the King’s Award for Sustainable Development.
She said she was confident the co-operative was on the right path.
“Growing recognition of our approach to regeneration will help to differentiate our offer and help us to deliver our vision of enriching life every day to secure the future.”
