ONE of the key players in the Cumbrian dairy industry, First Milk, has delivered strong financial results for the year ending March 31 2020.

The dairy firm in its Annual Report and Accounts show that the co-operative continues to deliver progress across the key financial areas of turnover and profit, while also increasing capital investment and member returns.

Key highlights include: Group turnover up six percent to £299.5m (2020: £282.8m); operating profit up eight per cent to £8.1m (2020: £7.5m); net profit up 24 per cent to £5.6m (2020: £4.5m); capital investment of £7.8m in the year (2020: £5.3m); net bank borrowings stable at £33m (2020: £33.1m); member premium increased to 0.5ppl (2020: 0.25ppl); announced commitment to Net Zero 2040 and launched a leading regenerative agriculture programme; 93 per cent of members signed First4Milk Pledge

Commenting on the results, Chief Executive, Shelagh Hancock, said: “In what was an extraordinary year, we were able to rapidly adapt and respond positively to the challenges we faced and continued to make good progress throughout the year.

“As a result, I am pleased to report increased turnover and operating profits, significantly increased capital investment at our sites, and continued progress in generating value for our members.

“As a co-operative business, we are committed to working together to regenerate the earth every day to enrich life and nourish future generations. We have seen 93 percent of our members voluntarily sign up to our First4Milk Pledge – a broader commitment to sustainable dairy including guaranteeing cows’ access to pasture and enhancing biodiversity.

“To this end, we have progressed our sustainability agenda at pace further this year, committing to Net Zero by 2040, launching an ambitious regenerative agriculture programme with our members and embarking on a world-leading soil carbon assessment programme.

“We have also committed to our largest capital investment programme to date for the year ahead, which will see us invest £14.4m in our sites to further improve operational capability. Overall, we have delivered promising progress and our vision remains clear – together, we will deliver dairy prosperity.”

Last year's report said First Milk had completed a £6m investment project at its Haverfordwest Creamery which it hoped would boost capacity and operating efficiency at the site.

Similar work has also been taking place at its Lake District Creamery.

In March last year, the co-op unveiled its First4Milk pledge which required its farmers to commit to grazing cows outside for a minimum of 120 days a year.

Earlier this month the dairy co-operative also announced a 0.5p/litre price rise for August 1. This takes its manufacturing standard litre to 31.0p/litre. The price includes the member premium payment for milk with 4.2 percent butterfat and 3.4 percent protein.

For the current milk year, the member premium is being held at 0.5p/litre, payable to those who have reached their capital target. The payment is made at the end of each milk year and for 2020-21 was worth £4,800 to the average member.

It is First Milk’s fourth consecutive monthly rise and vice-chairman Robert Craig said the uptick was due to capital investments in efficiency and productivity at its processing sites.

“We continue to deliver solid business performance and this increase reflects our aim to maximise our returns to members, particularly at a time when we know input costs are increasing at farm level,” Mr Craig said.

First Milk is the owner of the Lake District Creamery at Aspatria, and has more than 250 Cumbrian producer members, as well as supplying milk to Dalston-based Nestle.