Family dairy firm expanding north

GRAHAM'S, the family-owned dairy business, has increased its share of the increasingly-competitive Scottish milk market, swallowing smaller rival Claymore Dairies.

• Robert Graham welcomed the expansion into the Highlands

Bridge of Allan-based Graham's, which has been trading for more than seven decades, said the deal marked its 25th acquisition since 1993.

The latest takeover, for an undisclosed sum, will push the company through the 50 million turnover mark.

Industry sources said Claymore, one of Nairn's largest private employers, had been struggling in recent months, and last month cut the milk prices paid to its 11 farmers. The firm's management bought the loss-making business, then majority owned by Arla Foods, at the start of this year, with the loss of 65 jobs.

Graham's swoop comes amid a turbulent time for the Scottish dairy industry. Dairy Farmers of Britain, a co-operative, fell into receivership in June. There are now estimated to be some 16,000 dairy farmers in the UK, 43 per cent fewer than a decade ago.

Against this backdrop, Graham's and its larger, listed rival, Robert Wiseman, have been increasing their presence in the sector. East Kilbride-based Wiseman is now the source of more than 30 per cent of the milk consumed every day in Britain.

Claymore Dairies, which produces Highland Fresh, currently employs some 90 staff, 70 of whom are based at the firm's purpose-built processing and distribution dairy at Balmakeith. The remainder of the staff are located at distribution depots in Dingwall, Fort William and Wick.

Graham's said there would be no redundancies, with the takeover boosting its staff numbers to more than 400.

The company stressed it was keen to re-establish family roots in the Highlands. The father of current chairman Robert Graham established the dairy business, and the founder's wife was from Caithness.

Robert Graham junior, current managing director and the grandson of the firm's founder, said: "It's fantastic to return to some old family roots and my father has been passionately involved during this process.

"This will be Graham's most northerly location and will give us not only more capacity, but additional flexibility to our customer offering."

He added: "Claymore Dairies is a good business with excellent processing facilities. The dairy and its employees will become an immediate part of the Graham's family business.

"We will bring more than 70 years' experience and hope our investment will help the business flourish again."

Ian Larg, managing director of Claymore, said Graham's "diversity and greater market position" would be of huge benefit. "This will lead to greater security for the dairy, its staff and supplying dairy farmers," he added.