Dairy Crest invests US$100m in UK creamery

23 May 2018 --- British-owned dairy company, Dairy Crest is investing £85 million (US$113.5 million) in growing the capacity of its cheese business, £75 million (US$100.2 million) of which will be spent at its Davidstow creamery in Cornwall, UK. The investment is aimed at allowing further growth of the company’s market-leading cheese brands Cathedral City and Davidstow, enhancing whey production capacity and supporting farmers and economic growth in the South West.

Ultimately, the investment will enable Dairy Crest to process an additional 200 million liters of milk every year, increasing the company’s annual cheese production capacity from 54,000 tons to 77,000 tons over the next four to five years. The company’s whey production at the site, primarily used for the global infant formula market, will grow proportionally.

This increase in capacity at Davidstow, which employs around 200 people, will enable Dairy Crest to respond to the growing cheese market in the UK, including dairy convenience and snacking products, and on growing demand internationally in Europe, China and the US.
 
The company hopes that the investment will create a further boost for the region’s rural economy. In close consultation with its independent dairy producer organization, Dairy Crest Direct, the company has recently introduced a new milk pricing schedule. This will be simpler to manage and will reward those farmers who supply milk with the most suitable composition for the manufacture of the company’s cheeses and demineralized whey. Dairy Crest has also invested in its Farm Business Team, which liaises directly with farmers, to support them at this time of growth.
 
Mark Allen, Chief Executive of Dairy Crest, says: “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 crucial to our business and this investment should give them the confidence to invest in their 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 minimize 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,” he concludes.