First Milk is to close its loss-making Rothesay Creamery on the Isle of Bute with the potential loss of 19 jobs.
Milk production on the island had declined by more than 25% over the past two years and the creamery was now severely underutilised, according to First Milk. "The creamery is losing money and therefore it impacts the returns we can pass back to our farmer members," said executive director for cheese, Kate Allum.
If the closure goes ahead, First Milk will transport the island's milk to the Scottish mainland for processing. It currently has enough stock to satisfy existing customer orders but is reviewing the future of the Isle of Bute brand.
NFU Scotland has used the announcement as a warning to cheese buyers who "continually screw down the prices paid for a quality fresh product like cheese".
Isle of Bute Cheddar goes into both First Milk's Isle of Bute brand and retailer own-label products. It is stocked in all major retailers in Scotland. First Milk denied it was reviewing the future of any of its other island creameries.
Milk production on the island had declined by more than 25% over the past two years and the creamery was now severely underutilised, according to First Milk. "The creamery is losing money and therefore it impacts the returns we can pass back to our farmer members," said executive director for cheese, Kate Allum.
If the closure goes ahead, First Milk will transport the island's milk to the Scottish mainland for processing. It currently has enough stock to satisfy existing customer orders but is reviewing the future of the Isle of Bute brand.
NFU Scotland has used the announcement as a warning to cheese buyers who "continually screw down the prices paid for a quality fresh product like cheese".
Isle of Bute Cheddar goes into both First Milk's Isle of Bute brand and retailer own-label products. It is stocked in all major retailers in Scotland. First Milk denied it was reviewing the future of any of its other island creameries.
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