WIREDGOV

First instalment of crucial Scottish Government funding received by First Milk.

Rural Affairs Secretary Richard Lochhead recently (Monday) confirmed that the first instalment of funding to First Milk’s Campbeltown Creamery has been paid.

A cheque for £311,000 was paid into First Milk’s account last week, to support First Milk’s investment in new boilers for the facility. Further instalments of the £416,000 food processing grant will be made as the company implements the remainder of the project.

The payment is latest instalment of actions promised in the Scottish Government’s Dairy Action Plan, following the unveiling of the Scottish Dairy Brand at last month’s Royal Highland Show.

Mr Lochhead said:

“The Campbeltown Creamery plays a vital role in Argyll’s dairy sector, which is the backbone of the local economy. That is why the Scottish Government is investing over £400,000 into this facility, in recognition of its importance.

“First Milk has faced some struggles of late, and it is clear that the company’s turnaround programme must begin to deliver soon. The Scottish Government is committed to doing all we can to help our dairy farmers during these volatile times and we are working hard to implement our Dairy Action Plan. I hope these funds for the Campbeltown Creamery will improve the viability of the plant. A secure future for Campbeltown safeguards important jobs in Kintyre and provides a crucial market for the local milk producers who supply it.

“We are in discussions with First Milk to help them progress with their wider recovery plan. It is vital that we do everything we can to help the industry through these difficult times. Our work through the Dairy Growth Board, such as the Scottish Dairy Brand, are practical examples of actions we are taking to get behind our dairy farmers. Our dairy sector produces excellent products and we want to encourage consumers, as well as the wider supply chain to help promote and support the sector.”

Paul Flanagan, External Relations Director at First Milk said: “We are very grateful to the Scottish Government for this grant in relation to the whey investments we have made at the Campbeltown creamery over the last 18 months. Richard Lochhead and his team continue to work with us closely in a number of areas as we develop our businesses for the benefit of our farmers.”

This grant payment represents a contribution towards the cost of whey-recovery equipment and will also enable First Milk to purchase new boilers and related infrastructure all of which will make a positive contribution to the company’s bottom-line.