Peter Humphreys, the chief executive of First Milk, is to leave the UK dairy co-op in March, the company said in a surprise announcement today (4 December).
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Chairman Bill Mustoe, who only joined the company in October, will take “direct responsibility for leading the executive team” immediately, First Milk said.
Mustoe said he and Humphreys had “jointly agreed that the timing is right” to announce the chief executive’s departure.
Mustoe explained: “Since I took over as chairman at the end of October, my focus has been on speeding up the work that had already started on reducing our cost base and growing our profit streams. To this end, Peter and I have worked closely to develop a range of activities that will be delivered between now and the end of March to improve our milk price.
“Alongside this work, Peter and I have also been considering how we can best structure the executive team in order to drive the improvements that are required. We have now jointly agreed that the timing is right to announce that he will leave the business at the end of March.”
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By GlobalDataMustoe added: “As a result, I have decided to immediately take over direct responsibility for leading the executive team. This will enable me to gain a more detailed understanding of how the business operates. Peter will support us in an advisory capacity until his departure at the end of March.”
Humphreys has led First Milk for four years and in September announced the company’s annual loss of GBP7.1m (US$11.8m) as the co-op upped returns paid to members to “shelter” farmers from the downturn.
First Milk is looking to improve branded sales, which accounted for 5% of the company’s turnover in its last fiscal year. The group wants to up that portion to 20% this year.
On his departure, Humphreys said: “Given the new phase that the business is moving into, I believe that it is appropriate that I step aside from the chief executive role. I will be on hand to support Bill and the business over the next few months in whatever way I can.”
