Hopes for Tesco and creamery jobs

By Jamie McIvor BBC Scotland news

The Tesco move could mean dozens of jobs for the town

Supermarket chain Tesco is set to create up to 200 jobs in Campbeltown in a move which may boost the local economy.

The company is planning to replace its store in the town with a far larger branch on the current site of Campbeltown Creamery.

Meanwhile, a new state-of-the-art creamery will be built on the other side of the town.

The move should safeguard 100 jobs and 42 dairy farms in the area.

However, some in the area are likely to be concerned that the enlarged supermarket might do more harm than good and lead to the closure of shops in the town centre.

The creamery is vital to the local economy and beyond and this investment will enable its owners to take full advantage of new developments in the food sector Richard Lochhead Rural affairs secretary

Campbeltown Creamery, owned by First Milk, is supplied by 42 dairy farms and the dairy sector in Kintyre is worth £11m a year to the local economy. There is no other viable processing outlet for these farms and future prospects were bleak without a replacement creamery.

The new creamery will have a larger capacity than the existing one and will be funded from three sources: up to £3.9m from the Scottish Government; the sale of First Milk's existing creamery site to Tesco Stores Ltd; and funds from First Milk, the UK's leading dairy farmer co-operative.

Visiting Campbeltown, the Scottish Government's rural affairs secretary Richard Lochhead said: "This substantial investment is a great boost for the peninsula of Kintyre and the dairy sector.

"I made it clear at our recent Dairy Summit that we are committed to doing all we can to support the Scottish dairy sector. Our largest-ever grant for a dairy company in Scotland proves that we are willing to turn words into decisive action.

"The creamery is vital to the local economy and beyond and this investment will enable its owners to take full advantage of new developments in the food sector while delivering much-needed environmental improvements."

Rural affairs secretary Richard Lochhead (right) with Peter Humphreys, First Milk (centre) and Tony McElroy, Tesco (left)

Peter Humphreys, First Milk chief executive, said: "This is a red-letter day for First Milk and our employees and dairy farmers on Kintyre. The creamery and the dairy farming community on the peninsula are mutually dependent, and this new investment secures the future of the dairy industry in this part of Scotland.

"From day one the Scottish Government provided us with encouragement for this project and we are very grateful for the grant assistance they have committed to give us.

"We are also delighted that Tesco are involved with us on this project. They have been extremely supportive of our plans to maximise the potential of the excellent cheese we produce on Kintyre."

While some in the area may be concerned about the overall impact of Tesco's plans, the new creamery is the second major boost to the area's economy in recent months.

The Vestas wind turbine factory just outside the town had faced closure with the loss of 100 jobs. But it was taken over by rival company Welcon and the hope is it may expand substantially over the next few years.

Tourism hopes

Meanwhile, there is widespread optimism locally that Campbeltown is now finally putting its economic problems of recent years behind it.

Three run-down housing developments by the town centre have been bulldozed and are being replaced by high quality developments. A new swimming pool and leisure centre have also helped revive the town.

A new 18 hole golf course is also due to officially open later this summer, close to the established course at Machrihanish. The hope is that this could help boost tourism.

However, there seems to be little likelihood of reviving a ferry service between Kintyre and Northern Ireland in the immediate future despite the Scottish Government's support for the idea.

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