£10m milk plant for Scotland

ARLA FOODS UK has unveiled plans to build a £10m-plus milk processing plant in Scotland.

The 150m-litre dairy will be located on a spare site at the Cheese Company‘s factory at Lockerbie in Dumfriesshire.

Farmer co-op Milk Link is a majority shareholder in the Cheese Company and the deal strengthens its existing links with Arla.

Arla needed processing capacity in Scotland following its 450m-litre exclusive supply deal agreed with supermarket Asda in May.

As part of the agreement Asda pledged that milk sold in its 34 Scottish stores would continue to be sourced from Scottish farmers.

To ensure full transparency all of the milk also has to come from dedicated members of the Arla Foods Milk Partnership, Arla‘s direct farmer supply group.

Because AFMP had no members in Scotland, Ayrshire-based Sorn Milk has joined the group. Individual farmers supplying the contract will become ASDA farmer partners.

In the north of Scotland, members of North Milk Co-op will supply milk that will be processed at Claymore Dairies Nairn plant near Inverness.

Neil Davison, chief executive of Arla Foods UK, said: “Today‘s announcement has considerably strengthened our position in the Scottish marketplace. 

“And we are confident it will have a very positive effect on the entire dairy industry in Scotland.

“Our investment in Lockerbie has been well planned and carefully thought out. It is part of a coherent strategy for continuing growth north of the border.”

Nairn Glen, Milk Link group finance director, said: “The agreement with Arla is directly in line with Milk Link‘s strategy of ensuring the maximum use of our production facilities.”

For more details and reaction see the Business section in Farmers Weekly this Friday  (Aug 13) .