Island dairy farmers told to rethink markets

DAIRY farmers on Bute have been advised to take a more active role in marketing their milk following the decision earlier this month by main buyer First Milk to close the creamery on the island.

In a report drawn up by the Scottish Agricultural College on behalf of Highlands and Islands Enterprise, the remaining dairy farmers have been told that developing higher-value markets for their milk might be the only way to secure a long-term future.

With the departure of the main raw-milk buyer, the report authors state that farmer commitment and investment in an added-value product such as cheese would be needed to ensure the continuation of a dairy sector on the island.

First Milk is still collecting milk from the island producers, but the long-term viability of this could be threatened by rising transport costs.

The report was commissioned after First Milk announced its proposals to close the Rothesay Creamery. The creamery employed 19 people and produced cheese made from milk from island farms.

Cheese production ceased at the creamery on 7 May following a 30-day consultation period with its employees but the report estimates that a further 35 jobs are connected to the creamery through the dairy farms and other local suppliers.

This makes the retention of the remaining dairy farms a priority in terms of supporting the local economy.

Douglas Cowan, HIE's area manager for Argyll and the Islands said the report offered a number of avenues which could be explored.