FIRST Milk is at last living up to its name, and on course to become a leading player in the UK dairy sector.

That is the confident belief of recently appointed chief executive Shelagh Hancock, who has set out her stall in an exclusive interview with The Scottish Farmer.

With a track record of 25 years’ experience in the food and agricultural supply sector, including a number of senior executive positions at the former farmer-owned co-op Milk Link, Ms Hancock ticks all the boxes for keeping First Milk on an upward curve.

This week sees the end of a whistle-stop tour of the co-op’s regions, where she sounded out the feelings of members, many of whom have struggled to keep their heads above water, languishing at the bottom of the milk price pile. But there is no more talk of doom and gloom: “We have the building blocks of a good and strong business, and there is much more that we can do, and are well prepared to kick on and grow again.” she said.

Another plus is that the restructuring put in place by her predecessor Mike Gallacher has borne fruit, with the co-op in a much more stable financial position – back in profit – as will be revealed when the accounts come out in October.

Said Ms Hancock: “Our main aim is to continue to improve returns to our members, while at the same time providing them with a secure market for their milk. With our stronger financial base I have ear-marked three priority areas which we will concentrate on – driving more for less, driving growth and prosperity, and working together more cooperatively with our farmers.

“Between our fresh milk and cheese operations, we have a good balance and I believe a fantastic opportunity to extend our market share both with existing and new customers that will drive returns for our members. We are very much open for business.”

Following the unrest of its farmers on Bute, this also appears to be a problem solved. She stated: “We have had positive talks with our Bute farmers. They are important suppliers to our business, they are happy to work with us and have withdrawn their resignations.”

She was also confident progress can be made regarding Campbeltown creamery: “While we process all the milk in the Kintyre pool, I appreciate the site is not running at full capacity. The Kintyre milk field is as important as any other part of our operations, and we have picked up a range of new customers this year and introduced a new range of cheeses, including smoked cheddar."

On the price front she accepted that prices have been volatile over the past couple of years due to the peaks and troughs, but was hopeful that the improving situation will deliver more stability.

She said: “The highs are great – it is the lows that are the problem. We need to avoid that and steer a steady path through the maze. We currently are well-balanced between supply and demand and my message to members is that they can grow their milk volumes safe in the knowledge that there is growing customer demand to match this.

“Prices have been edging up over recent months and we will go up again from September," she said. "I strongly believe First Milk has got a bright future and as a British farmer-owned co-op, we have got great credentials to build on, particularly against the backdrop of the ongoing Brexit process."