Additional 4 million payment for Milk Link Members

The Milk Link Governing Board has approved a Member Processing Interest Payment relating to the 2010/11 financial year of 4 million, which equates to a 9.25% return on Members Qualifying Loan balances. This industry leading return on Members investment will be paid into Milk Link Members bank accounts on 31 May 2011.

On average the Processing Interest Payment will be equivalent to c.0.41ppl across the total volume of milk supplied in the year. It will mean that a long standing Milk Link Member producing on average 1 million litres per annum will receive a payment of c. 4,100.

Commenting on the payment Neil Kennedy, Milk Links Chief Executive, said: This is the fifth year in a row that we have been able to make a Processing Interest Payment to our Members and, to date, we have in total paid out in excess of 17 million to them. The 2010/11 payment demonstrates the solid performance of the business over the last financial year despite the difficult economic and trading conditions all in the dairy industry have faced.

Of course, this latest payment will be the first made since the end of the 0.5ppl investment levy for long standing Members. The withdrawal of the levy from 1 April 2011, together with the Processing Interest Payment announced today, 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.