Trewithen Dairy, Cornwall’s third largest milk buyer, is is set to increase production by 80% over the next four years.
With the help of a record £5.7m grant from the Rural Development Programme for England, Trewithen, of Greymare Farm, Lostwithiel, will increase its annual throughput to 44m litres.
More than 80% of that will be directly supplied from farmers who will be paid above-average milk prices, based on the higher cream content required.
“We are tremendously excited to have been awarded such a big grant, which will facilitate major investment resulting in win-win all round – for Trewithen Dairy, for Cornish farmers, for all our customers and for the Cornish economy,” said managing director Bill Clarke.
The phased expansion would create 40 new jobs and increase the dairy’s production capacity for fresh milk, clotted cream and buttermilk, with additional development of new products like soft cheese.
The programme includes a larger processing area and improved infrastructure. The business would strive to meet the requirements of big supermarket chains, said Mr Clarke, but independent and corner shops would remain at its core.
“Trewithen Dairy’s plans offer an extremely important boost for the Cornish dairy sector,” said Nick Buckland from the South West Regional Development Agency.
“This project will develop the dairy supply chain in Cornwall and mean that less milk has to be transported out of the county. It is a huge commitment that will help Trewithen, and its suppliers, become more successful and competitive.”