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Orkney milk shortage: Action plan to rescue industry hit by exodus of ‘ageing workforce’

Dairy farmers are retiring and moving out production, which has caused supply issues on the island.

Orkney dairy
A well-stocked shelf in Orkney, but there have been milk shortages. Image: Andrew Stewart/DC Thomson

Hard-hit Orkney dairy farms will receive a cash boost after the exodus of an “ageing workforce” caused a milk shortage on the island.

Orkney lost three herds in the first six months of 2023, as numbers dropped across Scotland.

By last month, the drop in dairy farming meant the Tesco in Kirkwall stopped selling local milk.

But now, the council has agreed to provide a cash life-line to keep the remaining operations going.

Cows on the island. Image: Orkney Dairy

What was agreed?

The council’s development and infrastructure committee has endorsed the Orkney Dairy Support programme.

This money will be used to “enable dairy farmers to implement modern efficiency measures”.

This would boost local milk supplies while also reducing the sector’s carbon impact.

The proposals follow complaints around the challenges and pressures being felt by the wider milk supply chain in Orkney

What does farmer say about Orkney milk shortage?

There is still a question mark above how much cash might be headed towards the county’s dairies – as the council says the amount will depend on match funding from “partner agencies.”

Graham Bichan is the managing director of the Orkney Creamery, and explained why the industry is in crisis.

Orkney Food and Drink chairman, Callum MacInnes, Graham Bichan from The Orkney Creamery (winners of Best Dairy-Based Supplier/Producer) and Peter Hutchinson from sponsors NorthLink Ferries at the Orkney Food and Drink Awards ceremony at Stromness Academy in 2016. Image: Tom O’Brien

He said there are now fewer dairy farms in Orkney, meaning less milk for his company to purchase.

Mr Bichan said: “I think retirement has been the main reason for people coming out of dairy farming.

“It’s an aging workforce, so people are exiting the industry. That’s the main driver behind it.

“The shortage has meant we have had to drop customers. We can’t access enough milk.

“So, we’re having to retract our business a little bit.”

Why did Tesco stop selling Orkney milk?

Last month, Tesco Kirkwall’s store manager, Matthew Johnstone, confirmed that Orkney milk would no longer be available from the supermarket.

The Kirkwall Tesco felt the brunt of the Orkney milk shortage. Image: Sandy McCook/DC Thomson

“Unfortunately they informed us they could not supply local shops and the volume we sold on top of that,” Mr Johnstone said in a statement on the Orkney Every Little Helps Facebook group.

“They decided to withdraw sale from Tesco due to not being able to supply the orders we were generating.”


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