Dairy Crest, UK, announced a significant investment in its Davidstow creamery in Cornwall, UK.

Ultimately, the investment will enable Dairy Crest to process an additional 200 million liters of milk every year, increasing the company’s annual cheese production capacity from 54,000 tons to 77,000 tons over the next 4-5 years. The company’s whey production at the site, largely used for the global infant formula market, will also grow proportionally.

This increase in capacity at Davidstow, which employs around 200 people, will enable Dairy Crest to respond to the growing cheese market in the UK, including convenience and snacking products.

The investment is also good news for the 330 dairy farmers in Devon and Cornwall who supply Dairy Crest. The company will work closely with these farmers to grow milk volumes. And, the company’s independent dairy producer organization, Dairy Crest Direct, introduced a new milk pricing schedule that’s simpler to manage and will reward those farmers who supply milk with the most suitable composition for the manufacture of the company’s cheeses and demineralised whey. Dairy Crest also invested in its farm business team, which liaises directly with farmers to support them at this time of growth.

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

“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,” says Mark Allen, chief executive. “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.