First Milk has announced that it is to sell its creameries on Arran and in Campbeltown. The announcement was made earlier this week by the co-operative company, which is owned by farmers in the UK.

First Milk CEO Shelagh Hancock said the decision to sell the creameries was made to allow more focus to be put on the development of major creameries in Haverfordwest and the Lake District.

“Following a strategic review, we have determined that our branded consumer-facing businesses in Campbeltown and on Arran are not a strategic fit for First Milk moving forward.

“There is undoubtedly a market for the premium Mull of Kintyre and Isle of Arran brands, but capturing the opportunities would require significant investment for activity that is not core to our strategic direction. However, we are confident that with the right focus and investment under new ownership the businesses would prosper.”

Shelagh added: “We appreciate that this decision will affect some of our colleagues, but we hope that under new ownership the sites will thrive, offering good employment prospects for the future.”

NFU Scotland response

NFU Scotland milk committee chair John Smith supplies milk to the Campbeltown creamery and said that while the announcement by First Milk will have come as a shock to farmers, both creameries are producing award-winning cheeses and will be “hugely attractive” to potential buyers.

Smith said: “In the short term, however, farmers supplying these creameries will be frustrated, justifiably worried – but not completely surprised – by the announcement. They have built their businesses with a view to continuing to milk cows and have stuck with First Milk through thick and thin.

“There are no other milk buyers currently operating in these remote milk fields, but they are very productive, producing high-quality grass-fed milk, so the focus is now firmly on building a plan and attracting potential buyers into the area to view the plants,” said Smith.

Following talks between NFUS Scotland, Argyll and Bute Council, the Scottish Agricultural Organisation Society and the Scottish Government, the next steps needed will be discussed at a meeting of producers, which is scheduled for next week.

Speaking to Farmers Journal Scotland a producer for First Milk, who did not wish to be named, said that farmers cannot be complacent but are optimistic about the move.

“First Milk’s strategy is moving towards bulk cheese production and we’re just too small, and so it’s just not right for either of us. Hopefully if we get a new operator with a bit more expertise we might do better.

“Producers are keen to work along with First Milk to find a way forward. There’s certainly no disagreement.

“Hopefully it will come right in the end.”