27 September 1996

£0.5m profits for Caledonian

CALEDONIAN Cheese Company profits hit £500,000 in the firms first year of trading from its creamery at Stranraer.

The company, a partnership between cheese factors MacLelland (60%), trader Murray Vernon (20%), and the Farmers Creamery Co-operative (20%) had a turnover of £31.3m.

"The results were far better than expected. We are delighted, especially since we took three months to get any product on to the market and have only recently been selling mature Cheddar," said Douglas Irvine of MacLelland.

"Our aim now is to gear our operation for the increased competition which will come when the GATT accord is fully operational. But I am confident that can be done by prudent buying of raw material, efficient manufacturing of quality cheese and aggressive marketing at home and abroad."

The company did not plan any short-term price cut to farmers who supply the creamery direct with about 10% of its milk. &#42

Allan Wright