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£21m to help make Scotland's dairy industry cream of the crop

27 July 2021

A digital dairy project aiming to create 600 new jobs in South-West Scotland and Cumbria has been awarded more than £21 million of funding.

Led by Scotland’s Rural College (SRUC), it is expected the Digital Dairy Value-Chain could generate an additional £60m a year for a region which produces nearly two billion liters of milk a year.

Globally, the industry produces around 3 per cent of greenhouse gases related to human activity. As well as helping to decarbonize the region’s dairy industry, the project will help to develop and retain a skilled and innovative workforce in the area to create new products and new ways of working.

These will be special to the region but also globally relevant in best practices and changing the perception of dairy as a high-value product.

Working with partners operating in the region, including the University of Strathclyde, University of the West of Scotland, CENSIS, First Milk, Lactalis UK & Ireland, Kendal Nutricare, Cows & Co Group, National Milk Records and SmartSTEMS, the project will provide a platform for research and business innovation in advanced, sustainable, high-value production and processing.

The project team will work with the dairy industry to develop and implement technologies for sensing and data handling, as well as infrastructure to support innovation and growth for local businesses, nurturing young entrepreneurs and teaching and training of new skills and capabilities. It will deliver advanced manufacturing processes to create a fully integrated and traceable supply chain as well as help businesses to develop new products and explore new markets.

At one end of the chain, farmers are increasingly able to monitor their cows and feeds, their environment and the milking process, while there also possibilities for sensing and use of data in smart factories producing more and better dairy products.

After receiving £21.3m from the UKRI Strength in Places fund, the project will be based at SRUC’s Barony campus near Dumfries, as well as at sites in Cumbria and across South-West Scotland.

Professor Wayne Powell, Principal and Chief Executive of SRUC, said: “This funding is wonderful news for the dairy industry in Cumbria and South-West Scotland, as well as for the renewal and decarbonization of the industry as a whole. It will provide a world-class platform for business innovation in advanced, sustainable, high-value dairy production and processing. SRUC and our partners are excited to be moving to the next phase of this fantastic project.”

South of Scotland Enterprise (SOSE) is a partner in the project. Chair of the region’s economic and community development agency, Professor Russel Griggs OBE added: “SOSE is determined to work with our partners to help the South of Scotland maximize the economic opportunities available as we transition to NetZero, and this digital dairy project is a fantastic example of this collaborative approach.

“Dumfries and Galloway is often referred to as the heartland for dairy farming in Scotland, accounting for almost half of the country’s dairy herd. The investment through this initiative and 600 new jobs it aims to create are potentially game-changing for the industry.

“SOSE is delighted to be involved and look forward to continuing to work closely with our partners on this innovative project, with the aim of helping dairy farming become a sustainable and thriving industry.”

Jo Lappin, Chief Executive of Cumbria Local Enterprise Partnership (CLEP), said: “The dairy industry is an important part of Cumbria’s economy and we are therefore delighted that SRUC has received £21 million to support the sector here and in South West Scotland.

“Digital Dairy Value-Chain will help to deliver more jobs in the sector, alongside stimulating research and innovation to support our farmers to develop their businesses. Importantly, it will also help to decarbonize the industry.”


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