Dairy Crest announces £75m creamery investment in bid to grow volumes

The investment in Davidstow will enable Dairy Crest to process an additional 200 million litres of milk every year
The investment in Davidstow will enable Dairy Crest to process an additional 200 million litres of milk every year

British-owned Dairy Crest has announced a significant investment of £75m in its creamery in Cornwall to enhance production and further support local farmers.

The dairy company will invest the sum in its Davidstow creamery, with hopes to grow the company's cheese brands, such as Cathedral City.

The investment will enhance production capacity and further the 330 dairy farmers in Devon and Cornwall who supply Dairy Crest.

Farmers will now work closely with Dairy Crest to grow milk volumes, and has introduced a new simplified milk pricing schedule which will reward those farmers who supply milk with the most suitable composition for the manufacture of the company’s cheeses and demineralised whey.

It has also invested in its Farm Business Team, which liaises directly with farmers, to support them during growth.

Ultimately, the investment will enable the dairy company to process an additional 200 million litres of milk every year.

It will also increase the company’s annual cheese production capacity from 54,000 tonnes to 77,000 tonnes over the next four to five years.

The company’s whey production at the site, largely used for the global infant formula market, will grow proportionally.

Growing demand

Dairy Crest says the increase in capacity at its Cornwall creamery, which employs around 200 people, will enable it to respond to growing demand for cheese in the UK and abroad.

The investment in Davidstow will also reduce the environmental impact of the creamery by reducing significantly its water usage, increasing the amount of water recycled back into the creamery and becoming more energy resilient.

Mark Allen, Chief Executive of Dairy Crest said the investment vote of confidence for its 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,” Mr Allen said.