DAIRY co-op First Milk has announced its members' payment terms will be back to normal from next week.

The Aspatria-based business has completed a two-year turnaround, forced on it by the drop in dairy prices.

As a result the deferral of member payment terms made at the end of 2014 will be reversed from Friday, bringing a boost to Cumbria's dairy farmers, a lynchpin of the county's vital agriculture industry.

Payments to members on Friday will be a double the usual amount, meaning members will receive six weeks' worth of money during February.

Since early 2015, First Milk has undergone a massivtransformation.

It has a new leadership team, a new business strategy, improved operational performance, is free of loss making subsidiaries and has established a new governance structure.

Clive Sharpe, chairman of First Milk, said: “This move sends a clear signal on the progress made by First Milk and returns our payment terms to normal for our members the board recognises the huge role members have played in the turnaround of their co-op, and thank them for their continued support.”

Chief executive Mike Gallacher added: “Returning to our previous payment terms draws a clear line under the turnaround process for First Milk. We now need to concentrate on the future.

“First Milk is a very different to the business of early 2015. We are a lean, focused and financially secure business capable of delivering a competitive milk price for the long term.

“We have only been able to deliver the huge changes at First Milk because of the support of members. The business can deliver more for members and we will now get on with that.

“The role for a scale British dairy Co-operative is even more compelling post Brexit and we aim to demonstrate this in the years ahead.”

First Milk has also completed work on new long term financing arrangements.

The company said this has been successful due to the strength of the First Milk core business and will generate significant future savings versus current financing costs.