DAIRY producers' co-operative First Milk reported 'another year of solid progress' with group turnover up 22 per cent to £252.7 million compared to £206.5 million last year.

However the business, which has a creamery at Haverfordwest, reported net profit almost halving from £6 million to £3.2 million in the year ending March 2018.

Capital investment across all its sites was also £3.2million while total group capital and reserves were up by £5.4m to £27.4m.

First Milk chief executive, Shelagh Hancock, commented: “This second year of positive trading results demonstrates that First Milk is consistently delivering stable financial performance and making solid progress on strengthening and growing the business.

"Critically, we have done this while putting our farmer members back at the heart of the business and, most importantly, delivering improved returns to our members.

“With strong foundations now firmly in place, First Milk is well-placed for future growth. As we look forward, our clear strategic focus is to drive profitable growth across our cheese and fresh milk businesses.

"We have embarked on significant capital investment at our sites to support the growing demand from our customers, enabling our members to increase milk production with confidence. Through the implementation of this growth strategy in the years ahead we will deliver prosperity for our members.”