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Dairy co-op First Milk has signed a new long-term contract to supply fresh milk to Nestlé UK & Ireland’s confectionery and beverage businesses.

The deal follows an improvement in First Milk’s fortunes during the past 18 months. CEO Mike Gallacher’s turnaround plan saw it focus on core business and offload loss-making ventures such as sports supplement brand CNP, with the co-op reporting a return to the black at the end of last year.