Peninsula posts a small profit early

29 June 2001

Peninsula posts a small profit early

DEVON-BASED co-op Peninsula Milk has announced a small profit for its second trading year.

It has also landed three new contracts to supply polybottled milk to Iceland, Booker and Aldi stores in an area bounded by Bristol and Southampton.

Peninsulas original business plan predicted a loss for the first three years.

Chairman Sandy Loud denied the company had secured the new business by price-cutting. "We provide good service and quality milk, and with Mr Wiseman moving in down here perhaps these companies decided they wanted to spread their sources of milk."

Most of the new business will not increase throughput. But it will add value to milk previously sold in low-margin bulk containers. From July 1, Peninsula will pay 20.25p for a standard litre.

Farmers should forget about joining large groups with no processing capacity, said managing director Geoff Lawrence. "In France, farmers regard part-ownership of processing plant as just as important as milk quota." &#42

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