FIRST Milk CEO Mike Gallacher is to step down and will be succeeded by Shelagh Hancock.

Over the last two years Mike Gallacher led a radical and successful transformation of First Milk, focusing on its core business in cheese and liquid contracts and divesting a number of loss making subsidiaries. Together with major cost savings and operational improvements, this has driven a c.£30M improvement in the financial performance of the business and corresponding improvements in returns to members. At the same time, the independent governance review initiated by Mike has led to major changes in how the Co-op is managed.

Shelagh Hancock has over 25 years’ experience in the food and agricultural supply sectors. Most recently she held the roles of managing director and business development director at Medina Dairy where she led the development of strategic relationships and business growth with major retailers. Prior to this, she held a number of senior executive positions at the farmer-owned co-operative Milk Link including milk business unit director and membership director.

First Milk Chairman Clive Sharpe said: “Mike has led First Milk through a period of huge change, with enormous levels of energy and focus. In addition to delivering a real transformation in our business performance he has also built an effective team and put in place the modern governance processes that will underpin our future success.

“Mike’s departure is not a surprise as he has been open about his plans."