Big Cheese Idea As Creameries Hope to Blend ; In Association With RBS

THE creation of a pounds 1bn dairy group is in the pipeline as two farming co-operatives plan to join forces.

Glasgow dairy business First Milk and Bristol-based Milk Link say they are in advanced discussions over a possible merger to take on overseas rivals, including in the cheese market.

The combined group will be jointly owned by 4,250 dairy farmers and handle nearly three billion litres of milk every year if the deal is approved by competition authorities.

The two businesses supply milk to dairy processors such as Dairy Crest and Robert Wiseman, as well as own-label cheese to supermarkets including Asda, Morrisons, Sainsbury’s and Waitrose.

They also hope to tackle competition from overseas co-operatives such as Danish group Arla and New Zealand’s Fonterra.

A spokesman for the firms said: “Over 50% of the UK’s cheese is imported at the moment and should this merger proceed, we hope it will give consumers more of a chance to buy British.”

One of Milk Link’s creameries is at Lockerbie in Scotland. First Milk has a creamery at Aspatria in Cumbria.

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