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Dairy Crest to expand milk processing facility in Cornwall

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Dairy Crest to expand milk processing facility in Cornwall

Dairy Crest to expand milk processing facility in Cornwall
July 17
13:00 2013

UK-headquartered Dairy Crest plans to expand its milk processing facility at Davidstow in Cornwall with an investment of £40m, to produce whey powder – a key ingredient for baby food.

The company plans to use the whey generated at Davidstow creamery during the production of cheese to produce demineralised whey powder.

“The company is currently finalising the required investments for the expansion and is in talks with several prospective partners.”

Davidstow creamery has been manufacturing Cathedral City cheddar cheese for the past 60 years and uses milk from more than 400 farmers in the region.

Dairy Crest noted that the project will add greater value to the high-quality whey stream at the Davidstow creamery and will
generate attractive returns for shareholders.

The company is currently finalising the required investments for the expansion and is in talks with several prospective partners.

Dairy Crest stated that it would reveal further details of the project in September.

The latest development was announced at the company’s Annual General Meeting on 16 July.

The company noted that for the three months ended 30 June 2013, overall trading and financial position have been in line with its expectations.

Dairy Crest chief executive officer Mark Allen said that all three of the company’s product categories, Cheese, Spreads and Dairies, are well positioned to generate medium-term growth.

“We are also making good progress with new projects to increase the returns we get from whey and move into other added value products,” Allen added.

During the quarter revenues were driven by the Cathedral City and Clover brands, which outperformed their respective markets.

Dairy Crest said that its cost reduction programme, which aims to deliver annual savings of £20m, is still on course.

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