Scottish dairy expansion for Arla Foods

Arla Foods UK plc today announced its plans to open its new Scottish dairy early in 2005, at Lockerbie in Dumfries-shire. This is a joint venture operation between Arla and its strategic alliance partner, Milk Link, expanding the utilisation of Milk Link's existing cheese factory site. For Arla's initial processing contract with Asda, Scottish milk will be sourced for Lockerbie from Sorn Milk, a member of Arla Foods Milk Partnership.

Neil Davidson, Chief Executive of Arla Foods UK plc said: "The new hi-tech dairy will employ approximately 100 people and will be capable of processing around 150 million litres of fresh milk a year.

"The development will considerably strengthen our position in the Scottish market place, enabling us to supply all our major supermarkets and other customers throughout Scotland from Lockerbie in the South and Claymore Dairies (Nairn) in the North. This will increase farmer, customer and consumer choice throughout Scotland."

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.