Dairy co-op First Milk said it has completed its turnaround and can now catch up on deferred payments to its farmer members.
The company, which was forced to delay payments when it suffered from falling milk prices at the end of 2014, says a double payment will be made to milk suppliers on February 10.
This means members will get six weeks worth of payments this month.
In a statement, First Milk said had “undergone a radical transformation” and shed loss-making subsidiaries since early 2015.
The co-op highlighted its new leadership team and business strategy, improved operational performance and more effective governance structure.
It has sold business units such as Glenfield Dairy and pulled out of Westbury Dairies, a joint venture with Arla Foods.
Overhead costs have been cut 35% and the company has completed work on new long-term financing arrangements.
“This has been successful due to the strength of the First Milk core business ,” the statement said, “and will generate significant future savings versus current financing costs”.
Read more: First Milk reports increased profit in strong half-year results
Chairman Clive Sharpe said: “This move sends a clear signal on the progress made by First Milk and returns our payment terms to normal for our members.
“The board recognises the huge role members have played in the turnaround of their co-op, and thank them for their continued support.”
Chief executive Mike Gallacher added: “First Milk is very different from the business of early 2015. We are a lean, focused and financially secure business capable of delivering a competitive milk price for the long term.
“We have only been able to deliver the huge changes at First Milk because of the support of members. The business can deliver more for members and we will now get on with that.”
“The role for a scale British dairy co-operative is even more compelling post Brexit and we aim to demonstrate this in the years ahead.”
