DAIRY PRODUCERS on the Kintyre Peninsula can breathe a little easier this week, as the lynchpin of their industry, the Campbeltown Creamery, has now received the first tranche of Scottish Government modernisation cash.

Rural Affairs Secretary Richard Lochhead confirmed on Monday that the first £311,000 instalment of funding to the creamery had been paid into the account of its owner and operator, farmer-owned dairy co-operative First Milk.

The money is explicitly intended to support First Milk’s investment in new boilers for the facility. Further instalments of the total £416,000 food processing grant will be made as the company implements the remainder of the project.

“The Campbeltown Creamery plays a vital role in Argyll’s dairy sector, which is the backbone of the local economy,” said Mr Lochhead. “That is why the Scottish Government is investing over £400,000 into this facility, in recognition of its importance.

“First Milk has faced some struggles of late, and it is clear that the company’s turnaround programme must begin to deliver soon,” he stressed. “The Scottish Government is committed to doing all we can to help our dairy farmers during these volatile times and we are working hard to implement our Dairy Action Plan.

“I hope these funds for the Campbeltown Creamery will improve the viability of the plant. A secure future for Campbeltown safeguards important jobs in Kintyre and provides a crucial market for the local milk producers who supply it.

“We are in discussions with First Milk to help them progress with their wider recovery plan,” he added. “It is vital that we do everything we can to help the industry through these difficult times. Our work through the Dairy Growth Board, such as the Scottish Dairy Brand, are practical examples of actions we are taking to get behind our dairy farmers.”

First Milk spokesman Paul Flanagan said: “We are very grateful to the Scottish Government for this grant in relation to the whey investments we have made at the Campbeltown creamery over the last 18 months. Richard Lochhead and his team continue to work with us closely in a number of areas as we develop our businesses for the benefit of our farmers.”

NFU Scotland’s Milk Committee chairman Graeme Kilpatrick commented: “This is extremely positive news for producers whose milk goes to Campbeltown Creamery. The new boilers will provide savings and the onus now is on the company to deliver on behalf of its members.

“Farmers need to see success domestically and in export markets and the focus will understandably be on First Milk’s turnaround plan going forward. We welcome the recognition by the Scottish Government that dairying is crucial to the local economy in Kintyre.”

- For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk