Today (8 January 2015), First Milk has made 3 major announcements to its members.
Firstly, there has been a delay in the payment for milk to members that was due on 12 January; it will now be deferred for 2 weeks to the 26 January. The company has also stated that all future payments will also be deferred by 2 weeks.
Secondly, the February milk price cuts will change from 2.43ppl and 1.6ppl for the manufacturing and liquid pools respectively to 1.33ppl and 0.5ppl, a reversal of 1.1ppl.
Thirdly, the capital contribution farmers pay to the co-op will increase from 0.5ppl to 2ppl between December 2014 and August 2015. As well as this the member's capital investment target will increase from 5 to 7ppl.
The move is aimed to 'deliver a cash injection into the business' before the spring flush to provide the company with a 'stronger business platform for 2015'. First Milk have stated that they are working with all major banks to explain the rationale so they can understand the situation in order to deal with the concerns of farmers.
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