Dairy to invest £20m in new processing facilities

A Devon dairy has committed to a £20m capital investment programme to upgrade its processing capabilities, reduce its carbon emissions and improve staff facilities.

More than £33m has already been invested in Crediton Diary since a management buyout took place in 2013.

The firm said it would look to install new treatment and water recycling plants, gas boiler and energy monitoring system, as well as developing new office facilities.

Profits were up marginally on the previous year, totalling £7.9m for the year ending 31 December 2022.

Inflation pushed up both processing costs and milk prices during the period, which led to a higher turnover of £114.1m, up from £101.5m in 2021.

However the dairy reported strong sales in its branded dairy drinks, including its Arctic Coffee range, protein shakes and lacto free milk ranges.

In order to match increased demand, it has recruited new dairy farmers and now has 94 suppliers, producing 160m litres each year.

Managing director Tim Smiddy said: “In the light of increasing demand for our product portfolio, we are confident about the long-term prospects for the dairy drinks sector and the role that we, as a focused and flexible, independent, added-value business, can play within it.”