Dairy group plans 200m-litres-a-year plant

By FWi staff

A group of dairy farmers and industry specialists has revealed plans to build a new factory capable of processing over 200 million litres of milk a year.

Amelca, formerly the Burton Group, is scheduled to begin operations in October 2001.

As well as liquid milk, the factory will produce cheeses, cream, whey concentrates and lactose.

The group, which has 25 members, is recruiting 130 producers within a 25-mile radius of the factory in Burton-on-Trent.

Initially farmers will be guaranteed a premium of 1ppl, with hopes of this figure increasing.

Those wanting to become shareholders in the plc will have to pay 2ppl supplied to contribute about 4m towards the total capital of 25-30m.

“I hope it will take off and will certainly give it as much encouragement as I can,” said agrifood consultant Roger Metcalf.

“Unless you take over an existing business, you have to enter the market in a modest scale with room to expand if necessary.

“They have the right farmers and the right specialists involved to succeed.”

GM-free milk will make up about 80% of the liquid milk processed at the plant, but Mr. Metcalf believes that the real success would be in import substitution.

“That is where the growing market is and to succeed, you have to exploit every possible niche.”