Dairy Crest is investing £85 million in growing the capacity of its cheese business, £75 million of which will be invested at Davidstow. The investment will allow further growth of the Company’s market-leading cheese brands Cathedral City and Davidstow, enhance whey production capacity and support farmers and economic growth in the South West.
It’s understood the investment will enable Dairy Crest to process an additional 200 million litres of milk every year, increasing the company’s annual cheese production capacity from 54,000 tonnes to 77,000 tonnes over the next four to five years.
The company’s whey production at the site, largely used for the global infant formula market, will grow proportionally.
330 dairy farmers across Devon and Cornwall supply Dairy Crest and the company says it plans to work closely with them to grow milk volumes which will create a further boost for the region’s rural economy.
NFU dairy board chairman Michael Oakes said: ““The announcement of this significant multi million pound investment by Dairy Crest is a positive sign for the dairy industry and for the future of those local farmers that supply the Davidstow creamery.
“We will me meeting with representatives from Dairy Crest at the Royal Cornwall show in early June to discuss the plans in greater detail. We want to understand exactly how the proposals will affect our dairy farmer members and how Dairy Crest will be working with their suppliers to securely manage a growth in milk volumes.”
Mark Allen, Chief Executive of Dairy Crest, said, “Dairy Crest is proud of the role it plays in the economy of the South West, and this £85 million investment is a vote of confidence in the Cathedral City brand, our employees and our farmers. The partnership we have with our farmers is absolutely crucial to our business and this investment should give them the confidence to invest in their own businesses, increase their productivity and enhance their important role in protecting the rural environment.
“As a major local employer, we are committed to being a responsible member of the community in Davidstow, and we have planned this investment carefully to minimise the impact of our creamery on the local environment and to become self-sufficient in water use. This is good news for the economy of the South West and for Britain’s farming sector. We hope that this investment will increase confidence and resilience when and where it is needed most.”