Of the total investment figure, £75m will be invested at Davidstow to allow further growth of the company’s cheese brands Cathedral City and Davidstow, enhance whey production capacity and support farmers and economic growth in the south west.
The investment is expected to enable Dairy Crest to process an additional 200 million litres of milk every year, increasing its annual cheese production capacity from 54,000 tonnes to 77,000 tonnes over the next four to five years. Dairy Crest’s whey production at the site, largely used for the global infant formula market, will also be grown proportionally.
According to Dairy Crest, this increase in capacity at Davidstow, is in response to the growing cheese market in the UK, including convenience and snacking products, and growing demand internationally in Europe, China, the US and the Far East.
Dairy Crest added that it wanted to work closely with the 330 dairy farmers in Devon and Cornwall who supply the business to grow milk volumes, which would “create a further boost for the region’s rural economy”.
The investment in Davidstow is also expected to reduce the environmental impact of the creamery by significantly reducing its water usage, increasing the amount of water recycled back into the creamery and becoming more energy-resilient.
The other £10m is to be invested in enhancing its packaging capabilities.
Mark Allen, chief executive of Dairy Crest, said, “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 absolutely crucial to our business and this investment should give them the confidence to invest in their own 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 minimise 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.”
The dairy industry recently outlined the progress made on its Dairy Roadmap, which set out a list of sustainability targets for the entire sector to achieve.