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Last Updated: Tuesday, 10 August, 2004, 10:43 GMT 11:43 UK
Asda deal leads to new dairy jobs
Asda sign
The supermarket giant has given milk sales a shake-up
About 100 jobs will be created when a multi-million pound dairy opens in Dumfries and Galloway.

The hi-tech site - in Lockerbie - is being built by Arla Foods, a major UK dairy firm.

It will be capable of handling more than 150 million litres of fresh milk per year.

A large amount of milk had been supplied to Asda by the East Kilbride company, Robert Wiseman. But Arla was made the sole supplier in the spring.

Asda has 266 UK stores, including 34 in Scotland.

The new plant is expected to be working by early next year.

It will be based on the site of The Cheese Company, a subsidiary of Milk Link, the UK's first fully integrated farmer owned dairy business.

Farmers intervene

The supermarket chain said that Arla could provide dedicated processing units, which means it can trace where its milk comes from.

Although the dairy group has six suitable sites in the UK, it needs one in Scotland to provide its product to Asda's Scottish stores.

A spokesman for the National Farmers' Union in Scotland said the scale of the deal between Arla and Asda raised several questions and the union would be looking for answers.


SEE ALSO:
Dairy firm hit by contract loss
25 May 04  |  Business
Robert Wiseman's liquid assets
02 Dec 03  |  Business
Dairy group cleared of trade abuse
09 Aug 02  |  Scotland
Milk group's profits down
14 May 02  |  Scotland
Scots dairy supplies Sainsbury's
08 Apr 02  |  Scotland


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