Milk Link is to pay its farmer members a processing interest payment for the fifth consecutive year.
A total of £4m will be paid back, which equates to a 9.25% return on members’ qualifying loan balances. On average, the payment will be worth 0.41p/litre across the total volume of milk supplied. It means a member supplying 1m litres of milk annually will get around £4,100. Money is due to be paid on 31 May 2011.
Milk Link chief executive Neil Kennedy said the 2010/11 payment demonstrated the solid performance of the business over the last financial year, despite difficult trading conditions.
“Of course, this latest payment will be the first made since the end of the 0.5p/litre investment levy for long-standing members,” he added. “The withdrawal of the levy from 1 April 2011, together with the processing interest payment announced today [20 May], will give our members’ dairy enterprises a much needed cash flow boost at a time of significant on-farm cost inflation.
“Above all, I believe it is a tangible reward for the investment and commitment of our members in building a major, added-value dairy products business.”