Green light for First Milk’s Campbeltown creamery

DESPITE a site sale deal with Tesco falling through, First Milk has announced its planned new cheese-making facility in Campbeltown on the Mull of Kintyre is going ahead.

Instead of selling the existing creamery site to Tesco - who say the numbers originally worked out in 2008 no longer stack up – First Milk will install a brand new manufacturing facility on the existing site.

The Scottish Government has agreed to back the latest proposal, as it had the original plan, and will provide grant funding up to £2m which is understood to be the same percentage equivalent as before.

The agreement effectively secures the future of 38 dairy farms and 100 jobs on the peninsula.  And communications director at First Milk Paul Flanagan, said there would be virtually no difference in cost for First Milk.

“The new factory will allow for increased production and provide processing efficiencies which cannot be achieved at the current plant and the cost for us will be pretty much the same,” he said.

Chief executive Kate Allum said the co-operative had remained “absolutely committed” to its farmers on Kintyre, to the creamery and to the development of First Milk’s renowned Mull of Kintyre brand.

“We have met with farmers and employees in Campbeltown to inform them of these developments, and agreed to work as one team alongside the Scottish Government to develop a long term sustainable future for the dairy industry on Kintyre.

“Finally, I want to put on record our thanks to Richard Lochhead and the Scottish Government. We greatly value their support over the last few years and their continuing commitment to this project.”

Readers' comments (5)

  • When the original plans for a new creamery were announced in 2007 we were told they would "secure the future of 42 dairy farms" , now we are told the new plans will secure the future for the remaining 38 dairy farms . I doubt if many in the area believe there will still be 38 dairy farms in the area by the time the new creamery opens .Talk of "increased production" is misleading in the extreme . Already milk is being tankered from outwith the area to sustain the industry at huge cost as much as 4.5 pence per litre according to NFUS figures .

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  • Kintyre1 in disguise, eh? :-) Does it matter how many dairy farms there are? Everyone knows there has been a reduction in dairy farms but the same production! Some farms have been purchased and consoldated with others!

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  • The main thing is after the investment many dairy farmers have made and are making that FM and the goverment are prepaired to invest in the existing creamery as they both no the importance of dairy farming to Kintyre.

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  • kintyre first milk and farmers had no intension of selling site to tesco because muller sale with wiseman and first milk would make their stake even better value now see if this creamery will be in business after the super markets stop buying from them

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  • It was Tesco who pulled the plug on the deal not First Milk, Tesco said their sum just did not add up. So what has this to do with Muller ?

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