A £21 million milk industry project could create hundreds of jobs in Dumfries and Galloway.
The Digital Dairy Chain is designed to turn south west Scotland and Cumbria into a “magnet” for tech companies.
The scheme, launched at the Barony campus at Parkgate on Wednesday, will focus on developing a fully integrated and traceable dairy supply chain.
And it is expected to eventually generate £60m a year of additional value by attracting large dairy processors to the region and supporting investment in industry-focussed research and development to make it the “go to” area for high-tech processing.
The project is being led by Scotland’s Rural College from the Barony where an £8m Dairy Nexus – a facility which aims to decarbonise the dairy industry – will be created.
Professor Wayne Powell, principal and chief executive of SRUC, said: “Working with local and national businesses, the Digital Dairy Chain will transform the region’s dairy production systems and establish it as a global leader in advanced, sustainable and
high-value dairy manufacturing.
“It will foster entrepreneurship, create new market opportunities, add new skills to the workforce and lay the foundations for more productive regions, all while making the critical journey towards net zero.”
South west Scotland and Cumbria combined are the UK’s second largest milk field, producing 1.9 billion litres each year, with a farm-gate value of £750million.
The area has 52 dairy manufacturing businesses adding value to milk produced from 1,300 farms.
The Digital Dairy Chain’s initial focus will be on the use of sensors and data from dairy herds and how it can be utilised to produce more and better products.
The project, which has the backing of the UK Government’s Strength in Places Funding, could lead to the creation of more than 600 jobs between Dumfries and Galloway, the Borders and Cumbria.
UK Minister for Scotland, Iain Stewart, said: “The Borderlands are home to many innovative dairy farmers and producers who are boosting their industry and the region’s economy while making significant improvements in sustainability and welfare.
“The UK Government’s £21.3million investment will help the development of these innovations by supporting the use of sensors and data right across the industry.
“We are also investing £4m in the flagship Dairy Nexus facility at the Barony campus as part of our £265m investment in the Borderlands Growth Deal.”
The chief executive of Cumbria Local Enterprise Partnership, Jo Lappin, added: “Innovation is critical to improving productivity and addressing labour supply issues. Digital Dairy Chain can play a part in supporting our sector to innovate. I am delighted the Dairy Chain is formally launched and look forward to continued close working with colleagues in SRUC to deliver this important project in south west Scotland and Cumbria.”
For more about the Digital Dairy Chain, visit www.digitaldairychain.co.uk.