In a joint venture with the farmer-owned Milk Link, Arla Foods UK plc is setting up a liquid milk dairy in Lockerbie in Scotland.

When in May, Arla Foods signed a contract with ASDA in the UK to become the sole supplier of milk to the retail giant’s 266 UK stores, the contract included 34 ASDA stores in Scotland.

”The decision to invest in a new dairy in Lockerbie will strengthen our position in the Scottish market. We’re confident that the move will benefit the entire Scottish dairy industry,” says Managing Director Neil Davidson, Arla Foods UK plc.

The dairy, currently owned by Milk Link, will be converted into a high-tech liquid milk plant producing approx. 150 million litres liquid milk per year. The dairy is expected to be commissioned in early 2005 and will employ a workforce of around 100.