Strength First Milk is still the largest milk buyer in UK in terms of number of suppliers and volume of milk collected

and also Handles 1.6billion litres from 2600. First Milk Academy and First Milk Direct: these are range of initiatives developed by First Milk including members, helping them to improve their efficiencies, quality and standard. First Milk has 50% stake in promo-vital, a prebiotic joint venture Fayrefield Food International. Good Current ratio : which shows that the company is liquid enough to cover its short term liabilities. Quick ratio: which shows that First Milk has enough asset to cover its current liabilities. Opportunities First Milk has the ability through westbury to take advantage of continued strength of commodity markets with world supply shortages anticipated for 2011 by delivering milk away less profitability sectors. First Milk appears to have historic link with major liquid dairies. This could be a opportunity to their products market. Good Creditors days: which shows that First Milk pays its farmers quicker; this could attract investors.

Weakness Weak financial position. Lost members and volume, this reduce its ability to raise the capital for investment. Market returns seems to be not benefitted greatly. Poor Financial ratio: crawling in gross margin, weak pre-tax profit margin and low RECO.

Threats Intense Competition: First Milk has intense competition from the three main milk processors to maintain market shares of retails sales, which is likely to have an effect of squeezing the profit margins. Outbreak Animal Disease: First Milk handles around 1.6billion litres of milk, any outbreak od animal disease like foot and mouth disease which are the most contagious disease can cause heavy loss. Milk supply and Production can be affected. This could also have an adverse effect in financial performance of the company.

Good RECO: This shows that recent investments Government Regulation: As a producer and are proving more successful in the company. distributor of food products, the company is entitled to a number of food related regulation The New management is trying to make the conducted by UK Food Standard Agency. These business more efficient and reduce costs. contains list of regulations like pasteurization of milk and milk products. Any changes or unable to comply will affect the company's operations. High Gearing ratio: If this ratio keeps going high, it could lead First Milk to a fall in capital,if supplier leave.

Milk Link Swot Analysis Strength High turnover. High Profitability ratio.

Weakness Poor quick ratio: which shows that Milk Link appears not to have not enough asset to cover its current liabilities.

Opportunities Strategic Partnership : Milk Link is into joint venture with volac which grants opportunity to further add value to whey and give it a presence in nutritional ingredients market which is expected to grow to a value of 3.6 billion by 2013. Acquisition: Milk Link is also into acquisition which might it provide the base of efficient production.

Threats Increase competition: Milk link produce both branded and non-branded cheese, facing competition from other large non-branded cheese producers like First Milk and Adams. Increasing competition could brings its margin under further pressure.

Government Regulation: As a producer and distributor of food products, the company is entitled to a number of food related regulation conducted by UK Food Standard Agency. These Increased Demand for Organic products: Natural contains list of regulations like pasteurization of and organic food products is one of the fastest milk and milk products. Any changes or unable to growing sector in food retailing . There is an comply will affect the company's operations. intensive growth increasing health and environmental awareness and consumers. The Outbreak Animal Disease: Milk Link handles UK, US and Germany would be the key around 1.1billion litres of milk, any outbreak od geographical areas of growth for the organic food animal disease like foot and mouth disease which market. As per as the industry trends, the total are the most contagious disease can cause heavy revenue of global organic food market reached loss. Milk supply and Production can be affected. $52,000 million in 2008 is expected to reach This could also have an adverse effect in $85,100 in 2013. Milk Link is positioned to financial performance of the company. accomplish this growing trends for natural and organic food products.