Dairy Farmers of Britain members to receive cash dividend

Dairy Farmers of Britain members are set to receive a cash dividend from interest earned on their Member Investment Accounts this year.

The 7.5% interest will be calculated on the total sum in members’ accounts and paid to them in cash for the first time.

Previously, any interest on members’ capital with the co-op had been rolled on to their account balance, effectively increasing their capital commitment.

For a producer supplying 1m litres, this would equate to a cash payment of about £3000, or 0.3p/litre.

The interest payout, coupled with 70% of members being freed from obligatory capital retentions within the milk year, will see many members benefit from an extra 0.8p/litre in 2008/09.

Matt Sheehan, membership director, said the changes reflected “a watershed” in the processor’s development.

“Alongside competitive raw milk prices, the significant direct financial returns we are now generating from our business increasingly demonstrate the extra value our members get from having their own milk processing,” he added.