WIREDGOV

The future of over 40 dairy farms and 100 jobs has been secured after famrers' co-operative First Milk unveiled plans to build a new creamery on the Kintyre peninsula.

It will replace the existing Campbeltown creamery, built in the 1820s as a whisky distillery before being converted to a cheese-manufacturing facility. Despite regular investment the site is now struggling to cope with modern demands.

The creamery is supplied by 42 dairy farms and the dairy sector in Kintyre is worth £11 million a year to the local economy.

The new creamery, also in Campbeltown, will have a larger capacity than the existing one and will be funded from three sources:

• up to £3.9 million from the Scottish Government
• the sale of First Milk's existing creamery site to Tesco Stores Ltd
• funds from First Milk, the UK's leading dairy farmer co-operative

At Campbeltown today, Rural Affairs and Environment Secretary Richard Lochhead said:

"This substantial investment is a great boost for the peninsula of Kintyre and the dairy sector. I made it clear at our recent Dairy Summit that we are committed to doing all we can to support the Scottish dairy sector. Our largest-ever grant for a dairy company in Scotland proves that we are willing to turn words into decisive action.

"The creamery is vital to the local economy and beyond and this investment will enable its owners to take full advantage of new developments in the food sector while delivering much-needed environmental improvements.

"At last week's Royal Highland Show there was undoubtedly a feel-good factor. It's important that we build on this momentum and use the nation's fantastic produce to enhance our economic, environmental and health credentials. Our national food and drink policy provides the framework to make this happen.

"The Campbeltown creamery is a huge part of the social and economic fabric of Kintyre. I am delighted that in partnership with First Milk and Tesco we are able to offer many families and communities throughout the region a much brighter future."

Peter Humphreys, First Milk chief executive, said:

"This is a red-letter day for First Milk and our employees and dairy farmers on Kintyre. The creamery and the dairy farming community on the peninsula are mutually dependent, and this new investment secures the future of the dairy industry in this part of Scotland.

"From day one the Scottish Government provided us with encouragement for this project and we are very grateful for the grant assistance they have committed to give us.

"We are also delighted that Tesco are involved with us on this project. They have been extremely supportive of our plans to maximise the potential of the excellent cheese we produce on Kintyre. The Mull of Kintyre brand has a growing national and international reputation and this is backed-up by the creamery's haul of three gold medals at the last World Cheese Awards."

Tesco Corporate Affairs Manager Tony McElroy added:

"This is a really exciting project for us and we are proud to be involved in helping to safeguard the future of cheese-making in Campbeltown. Our Partnership with First Milk will not only help to protect future production in the area, but will also enable Tesco to create over 200 much needed new jobs.

"We know our existing store is very popular and believe that this a fantastic opportunity to improve the shopping experience we can offer our customers in Campbeltown."

Tesco and First Milk will shortly undertake a public consultation process while they work up detailed plans for the new Campbeltown Creamery and new Tesco store. The planned new Tesco store in Campbeltown would be on the site of the existing Campbeltown Creamery and will:

• replace the current store on Lochend Street, Campbeltown
• create over 200 new jobs on top of the 90 people already employed at existing Tesco store
• have key environmental features such as natural roof lights and a combined heat and power plant

Related Information