Caledonian Cheese signs up 20 suppliers

THE Caledonian Cheese Company, which is part of Lactalis McLelland with a large plant in Stranraer, said yesterday it had signed deals with more than 20 new farmer suppliers in the South-west of Scotland and Cumbria.

The new recruits join more than 100 dairy farmers who have been contracted to Lactalis over the past year.

Some of them have walked away from deals with Robert Wiseman and First Milk.

Lactalis is confident it is on the verge of handling more than 200 million litres of milk a year: the output of a typical dairy farm in Scotland is in the region of one million litres.

As well as offering a highly competitive ex-farm price, Lactalis McLelland has been working closely with a group of its farmer suppliers to provide a range of services, including advice on nutrition and finance for capital projects.

Matthew Glover, the company's industrial director, said: "We have worked hard in developing relationships over the past year and are delighted with the number of farmers who have chosen to join us.

"We pride ourselves in the knowledge that farmers want to work with us. They see the benefits of the way we work by not tying them to onerous contracts. From the number of enquiries received from other dairy farmers, it is becoming clear that we are on schedule to reach our direct supply target by April 2009."

Glover added: "Our key brand – Seriously Strong – was voted the best cheese at the annual awards for British cheese. We have begun exporting this product to new markets for the first time, including the Middle East, Japan and France. That means with the brand continuing to grow, we are keen to source quality milk supplies for all of our products."

There have been massive changes in the dairy market over the past 18 months: buyers are now chasing milk and the processing sector is willing to pay a premium to ensure continuity of supply. The word is that Tesco is on the point of raising its supplier prices from early April until at least September. Tesco buys only 6 per cent of the UK milk, but its actions tend to lead the market.