A MILK cooperative with 250 Cumbrian dairy farmers on its books has announced that it is back in the black.

First Milk, which also the firm behind the Lake District Cheese Company, revealed a £6m profit for the past year.

This figure brings an end to ongoing cash issues that had plagued the company in previous years.

Chairman Clive Sharp said: "Over the last two years, First Milk has transformed. We have put in place a new business strategy, divested loss-making subsidiaries, improved our operational performance and implemented an effective co-operative governance structure.

"Rapid surgery was required over this period and it is testament to our farmer members that they recognised this and supported us through particularly difficult market conditions.

"First Milk is now a more focused and financially secure business. This is demonstrated through these significantly improved financial results and, most importantly, through our ability to increase milk prices to our farmer members relative to the market during the last financial year."

Highlights brought up in the report included a new long-term contract as suppliers to Nestle UK and Ireland, as well as a long-term cheese supply contract with Tesco and Ornua Foods.

Shelagh Hancock was also appointed as new chief executive. The company has also announced consecutive milk price increases this year, with the latest being on November 1.

The price of milk supplied by the co-operative increased by 0.52ppl from that date on a manufacturing standard litre of 4.2% butterfat and 3.4% protein.

Nigel Evans, vice chairman and farmer director, said: "The returns from the milk market continue to strengthen and this, along with advances in the performance of the business, mean that we can deliver this additional milk price increase to our members, which will be welcome news."

However, despite recent positivity at First Milk, the co-operative announced last month that it was to cut 20 jobs from its workforce of 96 at the Lake District Creamery.