New life is about to be breathed into a Highland dairy which could mean a handful of new jobs being created in Nairn.
Graham’s The Family Dairy will start producing yoghurt and soft cheese from its Claymore Dairy next year.
The Bridge of Allan-based firm ended milk production at the site last August with the loss of 13 jobs and turned the dairy into its northern distribution depot. Milk from the north’s four remaining dairy farmers was at that point all transported south for processing.
But milk bottling has since resumed. Managing director Robert Graham, jun, said the latest expansion was further good news.
“Our Nairn site is now packing all the milk that is produced up there. That’s both for the local market and for our Bridge of Allan site,” he added. Graham’s has in recent years extended its brands beyond milk into ice cream, spreadable butter, butter and cheese. The move into yoghurt and soft cheese has been assisted with a £482,770 food processing, marketing and co-operation grant from the Scottish Government.
Mr Graham was speaking as firm revealed annual results which showed turnover rising 21% to £68million in the year to March 31. Pre-tax profits, at £1.006million, more than doubled and brought results back into line with previous years after a difficult 2011-12.
Mr Graham said the milk market remained challenging and competition strong.
He added: “New contract wins and improved internal cost management has led to strong sales growth, however our commitment to invest for the long term in operations, plant and machinery in challenging market conditions means that we are not currently seeing a true return on capital employed.”
Mr Graham said the results are good, but were still not good enough.
The firm has revived plans for a controversial housing development on farmland at its base at Airthrey Kerse, near Stirling. A formal planning application is likely to be submitted this year. Mr Graham said if it went ahead it would inject capital into the business and allow greater investment in the business.