GRAHAM’s The Family Dairy has signed a deal to become the exclusive supplier of milk to US coffee shop chain Starbucks in Scotland.

The dairy company, which is based in Bridge of Allan near Stirling, will supply all of Starbucks’ 68 Scottish stores with whole, semi-skimmed and skimmed milk, as well as whipping cream.

Rural Affairs Secretary Richard Lochhead highlighted benefits of the deal for Scottish dairy farmers amid tough market conditions.

Graham’s noted that it already supplied milk to a “host of independent coffee shops” around Scotland.

Robert Graham, managing director of Graham’s The Family Dairy, said: “We’re thrilled to be adding our delicious milk to Starbucks coffee cups around the country. Starbucks share our commitment to quality produce with local provenance. This new partnership is not only positive for our business, it also benefits the Scottish dairy sector generally. We value highly the relationships we have with our 98 farmers and this deal is beneficial for all involved.”

Graham’s, which employs nearly 600 people, declined to put a value on the contract with Seattle-based Starbucks.

Mr Graham, highlighting his company’s strong growth and expansion of its product range, declared that the announcement of the deal with Starburcks was “just the start of a very exciting and interesting new year for Graham’s in 2016”.

Mr Lochhead said: “I very much welcome this deal between Graham’s and Starbucks, which will see 100 per cent Scottish milk in all 68 Starbucks’ outlets across Scotland. In September last year, I wrote to foodservice companies and other purchasers urging them to play their part to help ensure a thriving future for Scotland’s dairy sector at a time of difficult market conditions.

“Our dairy farmers are facing an extremely challenging time – caused mainly by unfavourable global factors – and we must therefore all get behind the industry and source locally when and where we can.”

Ian Cranna, a vice-president of marketing at Starbucks, said: “We’re committed to partnering with the best local suppliers to give our customers the best experiences in store, and so we’re delighted to announce our partnership with Graham’s The Family Dairy for all of our Scottish stores. Lattes are our most popular drink, so it’s important we use the finest local milk available.”