30% price rise in 17 months for Milk Link
DAIRY co-op Milk Link has reported a 30% increase in the price it pays its 2800 members for milk over the past 17 months.
Its reports and accounts show the average net price rose 2.3p/litre in the year to Mar 31. This has since increased by another 2.3p/litre to September, to 20p/litre.
In the same period, Milk Link has invested £1.8m in transport rationalisation, IT and other infrastructure costs, resulting in a small trading loss.
But the move will generate savings of £2.9m, equating to about £1035 per member over the next 12 months, says the co-op.
"These accounts reflect our initial priorities to reverse the decline in milk price and to improve the efficiency of our inherited operations," says chief executive, Barry Nicholls. "We improved returns to our members at a time when very real problems were facing the dairy industry." *