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Dairy expansion will create new jobs
01 February 2010
Cornwall’s dairy sector was given a boost this
week with the news that Trewithen Dairy - third largest buyer
of milk in the county - is about to embark on a major
expansion.
With the aid of a record £5.7 million grant
from the Rural Development Programme for England (RDPE), Trewithen
is set to increase its production by 80 per cent from 25 million
litres of milk a year to 44 million - more than 80 per cent
from direct supply farms.
The phased expansion will take place over four
years and see the dairy, at Greymare Farm, near Lostwithiel, create
40 new jobs and increase its production capacity for fresh milk,
clotted cream and butter milk. It also plans to move into the
production of soft cheese and to develop other products.
RDPE is managed by the South West RDA and in
approving the grant, the Agency considered that the Cornish economy
would benefit from:
- benefits passed back to a growing number of supplier farms to
reflect the high cream content of their milk and a reduction in
haulage costs;
- adding value to the raw milk in situ by processing it into new
products, and
- benefits to local customers and retailers who will have access
to a range of local dairy produce;
The dairy has agreed to continue its practice
of paying farmers above the South West average price per litre. The
premium derives from the higher cream content required by Trewithen
which is separated out in processing and used for their soft cheese
and cream-based products. Other processors dealing with
liquid milk sometimes stipulate lower cream levels to avoid the
generation of what they regard as a by product.
The expansion programme will include a larger
processing area, improved infrastructure and purpose-built new
offices and staff facilities, which will replace temporary
accommodation.
There will also be major investment in
equipment and staff training aimed at further improving the quality
of products and service.
The project also includes the creation of a
Farm Liaison Manager post specifically to build effective
relationships with suppliers and to focus on building the quality
and consistency of supply.
Trewithen will also strive to achieve greater
“professionalism” to satisfy the challenging requirements of the
big supermarket chains that have contributed to the dairy’s growing
business volumes in recent years.
But managing director Bill Clarke stressed
that the independents and “corner shops” would remain the
foundation and core of the business. “These have always been
at the heart of our development,” he said.
“We are tremendously excited to have been
awarded such a big grant, which will facilitate major investment
resulting in win-win all round - for Trewithen Dairy, for
Cornish farmers, for all our customers and for the Cornish
economy.
“More than anything, it will enable us to
consolidate and progress our vision of working with the farmer milk
suppliers to continue giving them one of the best milk prices for
the best quality Cornish milk, with excellent cow welfare and care
for our environment.”
South West RDA Board member Nick Buckland
said: “Trewithen Dairy’s plans offer an extremely important boost
for the Cornish dairy sector. They are totally in line with
the objectives that we are working to achieve through RDPE
investment in the County and will further reinforce the
significance of food and farming for Cornwall’s economy.
“As well as increasing Trewithen’s own
production and range of products, this project will develop the
dairy supply chain in Cornwall by increasing the number
of farmers who supply it and by offering a premium price for
milk. The development of the soft cheese will make full use
of the cream content to support the premium price paid to the
farmers. It will also mean that less milk has to be
transported out of the county.
“It is a huge commitment that will help
Trewithen, and its suppliers, become more successful and
competitive.”
RDPE is jointly funded by the EU and Defra and
RDPE programmes specifically for this region are managed by the
South West RDA. Business support from RDPE is provided through the
Government’s Solutions for Business services.
Cornwall Agri-food Council supported
Trewithen’s application for RDPOE funding. Its chairman,
Catherine Mead, said: “The dairy sector is the largest sector of
the agricultural industry in Cornwall and we support activity that
adds value to Cornish milk and, more importantly passes a
proportion of this added-value back to farmers.
“This project, by supporting another buyer in
the market place, will help to generate competition for milk.”
She said that Trewithen’s expansion plans were
in accord with the objectives of the Cornish dairy industry
strategy published in 1999 and reviewed in 2007:
- To exploit existing and new market opportunities for dairy
products;
- To build and improve the processing capacity in Cornwall by
encouraging new starts, by reinvesting in and expanding existing
businesses and by attracting inward investment;
- To improve the competitive performance of Cornish processors
through bespoke business development support; and
- To strengthen Cornwall’s dairy farming base through improved
production efficiency and improved marketability of the milk
supply.
Ends
For more information on Trewithen Dairy, visit
www.cornishfarmdairy.co.uk
For more information on RDPE or to speak with
other people quoted in this press release, please contact Pat
Murray - RDPE Communications at the South West RDA, on
07733264756
Notes to editors:
Trewithen Dairy
The Clarke family has been at Greymare Farm
since 1977, starting with just one employee and expanding cow
numbers from 70 to 300. They started processing in 1994 and
the latest investment will be in bottled milk immediately and soft
cheese later. The dairy’s existing products also include
Cornish clotted and liquid creams, butter, yoghurt and crème
fraiche.
Only five months ago, Trewithen created
another 25 new jobs by investing £1 million from its own resources
in improved facilities and products to meet the continuing growth
in demand from its three customer bases – the independent retailers
and corner shops, the South West’s thriving food processing
industry, and the supermarket sector.
Mr Clarke, who owns and runs Trewithen with
his wife Rachel and their son Francis, is a well-known figure in
South West farming circles. He is a former South West and
Cornwall county NFU chairman and NFU national council delegate.
RDPE
The Rural Development Programme for England
(RDPE) runs from 2007 to 2013. It is the 2nd
pillar of the Common Agricultural Policy and aims to support the
creation of genuinely sustainable farming, forestry and food
sectors, whilst also bringing wider benefits for the economy, the
environment and rural communities. It provides the major financial
vehicle for protecting and enhancing the environment and securing a
range of public benefits for society. Defra is the Managing
Authority.
The RDPE has three priorities for rural
development:
- Improving competitiveness of the agriculture
and forestry sectors
- Improving the environment and the
countryside
- Improving the quality of life in rural areas
and encouraging diversification of economic activity
In this region, the South West of England
Regional Development Agency (RDA) will deliver priorities 1and 3
with a budget of £156.8 million over the seven years. The RDA is
also responsible for ensuring that five per cent of the RDPE
funding is spent on enabling community involvement in rural
development. The delivery partners in the South West aim to
ensure that investment in each of the three priorities will help
support investment in the others.
The RDPE priority for improving the
environment and the countryside is being delivered nationally by
the Forestry Commission’s Woodland Grant Scheme and Natural
England’s Environmental Stewardship Scheme. In
addition, a minimum of 5% of the programme will be delivered
through a local community-led approach.
The aims, objectives and priorities for
delivering RDPE in South West England were agreed for the
socio-economic investments with regional partners and these are set
out in the Regional Implementation Plan. On the basis of a thorough
analysis of South West England’s rural characteristics and economy,
the Plan sets out eight themes:
- Skills development
- Social enterprise
- Business support
- Supply chain and adding value
- Resource management (soil, water, energy,
waste)
- Sustainable rural tourism
- Biodiversity and landscape
- Community-led development
Further more information on RDPE see
http://www.sw-ruralgateway.info/
Organisations involved in delivering
RDPE
The South West RDA leads the development of a
sustainable economy, investing to unlock the region's business
potential. It works in partnership with public, private and social
purpose organisations to drive up the region's productivity by
giving people the skills they need, encouraging enterprise,
improving infrastructure, regenerating places and promoting the
strengths of the region. For more information see http://www.southwestrda.org.uk/
Natural England works for people, places and
nature to conserve and enhance biodiversity, landscapes and
wildlife in rural, urban, coastal and marine areas. It conserves
and enhances the natural environment for its intrinsic value, the
wellbeing and enjoyment of people, and the economic prosperity it
brings. For more information see http://www.naturalengland.org.uk/
Environmental Stewardship (ES) was launched in 2005, builds on the
very best practice already evident in British farming. During the
period 2007-13 the national budget for ES will be £2.9 billion. The
objectives of ES are to:
- Conserve wildlife (biodiversity).
- Maintain and enhance landscape quality and
character.
- Protect the historic environment and natural
resources.
- Promote public access and understanding of
the countryside.
- Natural resource protection.
The Forestry Commission is the government department responsible
for forestry in Great Britain. It supports woodland owners with
grants, tree felling licences, regulation and advice; promotes the
benefits of forests and forestry; and advises Government on
forestry policy. For further information, visit http://www.forestry.gov.uk/england-swe