First Milk, the farmer-owned co-operative headquartered in Glasgow, has released its latest mid-year financial results (for the six months to 30 September 2016) showing continued progress in operating profits.

The interim mid-year financial metrics showed operating profits rose to £9.2m from £1.2m in the prior year, while profits before tax were up to £6.8m from a loss of £2.4m in the previous year. Bank debts fell to £26.1m from £46.1m in the prior year.

Over the last 20 months First Milk has undergone a radical transformation, with a new business strategy, the divestment of loss-making subsidiaries, improved operational performance and a more effective co-op governance structure. To date the programme has delivered a £33m improvement in business performance.

CEO Mike Gallacher, who took on leadership of the business in March 2015, commented: "The huge challenges at First Milk were very evident in early 2015 and required us to make rapid and significant changes to the business. The combination of strategic, operational and governance issues have all needed to be addressed and the new leadership team have worked with focus and pace.

"Twenty months on, First Milk is now a simpler and more efficient business. This is demonstrated through significantly improved financial results and most importantly through increasingly competitive milk prices to our farmer members."

Chairman Clive sharp said: "Rapid surgery was required from the new management team over the last twenty months and it is a testament to our farmer members that they recognised and supported this through the most difficult of market conditions.

"The continued improvement in performance has given us the platform to increase our milk price faster than the market over the last six months and we are confident of further significant price increases for all our members over the coming months."

Market round-up

Wallets Marts held their annual Christmas show and sale of prime lambs in Castle Douglas on Tuesday when there were 24 pens presented for judging. The championship was won by Messrs Gray, Eastfield, Symington with Texels that scaled 42.7kg and went on to sell for £100. The reserve ticket also went to the same home for Beltex weighing 40.9kg that fetched £99.

Overall, the 2738 lambs forward averaged £68.01 or 160.4p per kg (no change on the week).

There were also 319 cast sheep when all classes were sharper on the week with ewes selling to £89 for Texels and £55 for Blackfaces.