Scotland: National Rural Network
Connecting Rural Scotland - Promoting Rural Growth

Farmers co-operative First Milk has unveiled plans to build a new creamery on the Kintyre peninsula.
This will replace the existing Campbeltown creamery, built in the 1820s as a whisky distillery before being converted to a cheese-manufacturing facility, it 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

Rural Affairs and Environment Secretary Richard Lochhead greeted the news enthusiastically, saying, "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."