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Processors Expanding into Value-added Market

21 May 2013

UK – Dairy Crest and First Milk are both developing into ‘added-value’ foods businesses, pushing cheddar brands and new market opportunities.

Despite Dairy Crest being a public limited company and First Milk being a farmer owned cooperative, they have common business aims with both moving away from commodity trading, according to DairyCo’s recent Guide to Milk Buyers Report.

Branded Cheddars, Cathedral City and Lake District Cheddar are both seen as key to drive added value as well as exploiting developing options in the market such as whey for body building and infant milk formula.

In their report DairyCo revealed that over the last 18 months, First Milk has invested £32 million in improving the processing capabilities in its Lake District and Maelor sites and over 20 million in acquisitions and joint ventures.

Over the past three years First Milk has increased turnover by 32 million (6 per cent) despite membership declining by 16 per cent.

Recent events at Dairy Crest have seen a streamlining of processing facilities, such as the sale of the St Hubert, and investment in their remaining sites. Around 90 per cent of Dairy Crest’s profits come from manufactured foods, although two thirds of sales turnover comes from its dairy sector.

TheCattleSite News Desk

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