Dairy farmers in the North-east are hoping to attract investment in a proposed new milk processing facility following the decision of Muller Wiseman to close its Aberdeen plant.
An initial study commissioned jointly by private sector development body, Opportunity North East (ONE), and Aberdeenshire Council has identified a number of milk processing businesses who have expressed interest in investing in the area.
Since the closure of the Aberdeen plant in June, the dwindling number of dairy farmers in the area, most of whom have supply contracts with Muller Wiseman, have had to accept a transport charge of 1.75p per litre to have their milk shipped to Bellshill, Glasgow.
The surcharge, on top of low milk prices, is jeopardising the future of dairy farming in the North-east but most of the remaining producers want to stay in business if a local processing plant can be established.
“Stage two of the study will look in detail at each of the potential investments in processing,” said Peter Cook, director of food, drink and agriculture at ONE.
“Centralised buying and distribution by retailers and the increasing shelf life of liquid milk has led to a concentration of distribution centres and processing in the central belt of Scotland or further south.
“This has put North-east dairy producers at an economic disadvantage. Our aim is to help producers find alternative uses for their milk. We are committed to working with producers, NFU Scotland and Aberdeenshire Council to bring new investment and market opportunities to the region.”
Mr Cook said milk producers were continuing to face tough times because of market over-supply but there were reasons for optimism.
“Our work with the food and drink industry tells us that there are exciting opportunities for milk and dairy products so we should be positive about the future,” he said.
Chairman of Aberdeenshire Council’s infrastructure service committee, David Aitchison, said dairy farmers had spoken with “one unanimous voice” in calling for a detailed economic study into the potential for local processing.
“This presents an opportunity to develop a strategy which will have local dairy farmers at its heart which is encouraging for a sector that often feels side-lined,” he said.
ONE was set up earlier this year with an investment of £25 million over five years from the Wood Foundation, the charity established by oil tycoon, Sir Ian Wood, to encourage economic and community development and help rebalance the economy of the North-east in the wake of the downturn in the North-east oil industry.
MARKET REPORTS
Ayr (Craig Wilson Ltd). 696 store cattle. 363 bullocks sold to £1340 for a Charolais and averaged £998.69 (214.5p/kg). 95 Friesian bullocks sold to £1140 and averaged £671.79 (143.8p/kg). 238 heifers sold to £1140 for a Charolais and averaged £895.21 (209.7p/kg). 1774 store lambs sold to £70 for Texels and averaged £57.82. All classes £3-£4 up on last week.
Stirling (Caledonian Marts Ltd). Averages (per kg): prime bullocks 211p, prime heifers 214p, beef bulls 177p, black and white bulls 141p, beef cows 122p, dairy cows 90p
Dumfries (C & D Auction Marts Ltd). 14 prime cattle (per kg). Heifers to 223.5p to average 206.3. Bullocks to 210.5p to average 196.23p. 80 OTM cattle. Dairy to 121p to average 91.59p. Beef to 175p to average 132.64p. 2236 lambs to 205p to average 186.9p. 937 case ewes and rams to £124.50. Heavy Texel to £95 to average £61.42. Light Lleyn to £74 to average £45.17.
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