First Milk, the farmer-owned co-operative, reported another year of solid progress despite profits dipping as a result of paying its members better prices for their milk.

The annual results for the year ending 31 March 2018 shows a profitable business with a strengthening balance sheet that is growing. The financial highlights included group turnover up 22 per cent to £252.7m (217: £206.5m) and net profit for the year of £3.2m (2017: £6m). Despite capital investment of £3.2m across all the co-ops sites in the year, total group capital and reserves were up by £5.4m to £27.4m. The co-op has commenced a major capital investment programme of £6.5m at Haverfordwest Creamery in March 2018.

First Milk chief executive, Shelagh Hancock, commented: "This second year of positive trading results demonstrates that First Milk is consistently delivering stable financial performance and making solid progress on strengthening and growing the business. Critically, we have done this whilst putting our farmer members back at the heart of the business and, most importantly, delivering improved returns to our members.

"With strong foundations now firmly in place, First Milk is well-placed for future growth. As we look forward, our clear strategic focus is to drive profitable growth across our cheese and fresh milk businesses. We have embarked on significant capital investment at our sites to support the growing demand from our customers, enabling our members to increase milk production with confidence. Through the implementation of this growth strategy in the years ahead we will deliver prosperity for our members."

Market round-up

C&D Auction Marts Ltd sold 4 prime heifers at its weekly sale in Dumfries on Wednesday to a top of240p per kg and an average of 215p.

In the rough ring 23 beef cows sold to 139p and averaged 113p, while 34 dairy cows peaked at 135p and levelled at 96.8p.

The firm also sold 478 prime lambs to a top of £90 per head and 188p per kg to average 170p (no change on the week).

A larger show of 760 cast sheep saw all classes easier on the week with heavy ewes selling to £137.50 for Texels and averaging £58, while light/export-type ewes peaked at £53.50 for Cheviots and levelled at £32.

Messrs Craig Wilson Ltd sold 694 prime lambs in Newton Stewart on Wednesday to a top of £90 and 177.6p to average 167.5p (-3p).

Cast sheep were also cheaper on the week with 142 heavy ewes selling to £113 for Texels and averaging £63.33, while 414 light ewes peaked at £55.50 for Blackfaces and levelled at £33.96.