GRAHAM's The Family Dairy has taken on the milk distribution arm of Mitchells Dairy.

It means Scotland's largest independently-owned dairy will take over deliveries to domestic and business customers across Aberdeenshire.

Inverurie-based Mitchells, formed in 1928 and still family-owned, plans to focus on building its retail business and concentrate on the development of its dairy shop and tearoom. Graham's, which has its farm at Bridge of Allan, will take on all 21 staff involved in the milk distribution arm.

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Judy Whyte, from Mitchells, said: "Operating at the scale Mitchells has over recent years has been tough, competing with low prices in the multiples and we are pleased to be able to hand over in a smooth transition to Graham's who are far better placed to progress the business we have built."