First Milk Delay Payments January 8, 2015 12:00 am Struggling First Milk has hit members with three announcements to try to alleviate its cash flow problems. Firstly it has told suppliers that their December milk cheques due on 12th January and 26th January will be deferred by two weeks, these will now be paid on 26th January and 10th February. This two week deferral will continue through 2015 until the company decides it is in a position to change it. Secondly, some better news; the milk price cuts scheduled for February will now be 1.33ppl and 0.5ppl for manufacturing and liquid pools respectively as opposed to the original announced cuts of 2.43ppl and 1.6ppl; a reversal of 1.1ppl. But, thirdly, the capital contribution members pay will increase from 0.5ppl to 2ppl. This will also be back dated to include December’s milk and will continue until August 2015. In addition, member’s capital investment target will increase from 5 to 7ppl. The aim is to give the business a ‘stronger business platform for 2015’. The reality is members have little choice in the current climate.
