Creamery investment is boost for dairy sector

The dairy sector in Scotland and northern England has been boosted today (29 September) after Milk Link announced a £20m investment in its Lockerbie Creamery.

It is the co-op’s largest ever capital expenditure programme and will increase the site’s annual cheese production capacity by 50% to more than 37,000t, making it the largest dairy processing facility in Scotland.

An extra 120m litres of milk will be needed once the refurbished plant is up to full capacity and although work is not due to be finished until next autumn, Milk Link chief executive Neil Kennedy said the co-op was already looking for additional members. “Lockerbie is well located and has good logistics for getting milk from south-west Scotland or further afield in northern England.”

The decision to expand cheese production at the site reflected growing demand for British cheeses, as well as strong dairy commodity markets, he said. “Our approach is to continue to keep the consumer market here supplied, while being able to take advantage of commodity markets where we can. It’s about achieving a balance and not putting all eggs in one basket.”

The Lockerbie Creamery is due to remain operational during the expansion process and butter production at the site will be unaffected.

The news was welcomed by farming unions and Scotland’s rural affairs secretary Richard Lochhead, who said it would help secure a “long-term and vibrant future for the dairy industry in Scotland”.

NFU Scotland milk committee chairman, Kenneth Campbell described the investment as a “shot in the arm for the local economy”.

“With one third of Scotland’s dairy cows in Dumfries and Galloway and ample milk being produced in Ayrshire, Lanarkshire and the Borders, there is plenty of milk available for haulage to the plant,” he said.

NFU dairy board chairman Mansel Raymond added: “The NFU has a vision for a vibrant and expanding industry, to reflect the growing global demand for quality dairy products. Investment of this type, not only on UK soil, but by a farmer-owned cooperative business is very exciting.”