In a letter to members last week, First Milk chairman Clive Sharpe said that the market was recovering and that the company had exited its loss making activities.
He added that First Milk was bringing forward the delivery of its business performance supplement, which he said comes from continuing improvements in efficiency.
The supplement was set at 0.75ppl ($0.0099/l) and will now increase by 0.25ppl ($0.0033/l) to 1ppl ($0.0131/l) from September. Further increases in this supplement are budgeted and will follow shortly to cover the initial 2ppl ($0.0263/l) that First Milk said it has committed to deliver.
“Last month we forecast a 0.5ppl ($0.0066/l) increase for our manufacturing pools from September 1, however with further advances in the market we will actually deliver a 1ppl increase,” Sharpe said.
Chief executive Mike Gallacher added that while he was pleased with the increases, the company recognized that they do not yet return members to sustainable prices.
* Includes Tesco cheese group payment estimated at 0.94ppl for Sept