Scotland’s largest independent dairy – Graham’s The Family Dairy – has hailed a successful year with both turnover and pre-tax profits up.
The Bridge of Allan-based firm reported a 25% increase in sales to £85million for the year ending March 31, 2014.
This was against a 31% increase in pre-tax profits to £1.322million, from £1.007million the year before.
According to the firm, which sources milk from more than 90 dairy farmers and employs 500 staff, around half of all Scots households now buy Graham’s dairy products.
Managing director Robert Graham Junior said the firm was also on track for an increase in turnover and pre-tax profits this year, although not to the same extent as last year.
He said the firm had to a large extent been protected from the recent downturn in global dairy markets as a result of only producing products for the domestic market.
“While we have all worked incredibly hard to achieve this increase in sales, margins remain extremely tight,” added Mr Graham.
Earlier this month the firm introduced plans to pay farmers on an AB contract, whereby a certain price is paid for the liquid market and a percentage for milk destined for manufacturing.
According to Mr Graham, the proposed scheme had gone down well with farmer suppliers who currently receive 27.5 pence a litre for their milk.
“The AB contract will balance out what they [farmer suppliers] produce versus what the business needs,” added Mr Graham, who admitted it would sting farmers who were heavily spring-calving.
On plans for future supply, he said the firm planned to encourage existing suppliers to increase production before looking to recruit new suppliers to meet demand.
Earlier this year the business submitted a planning application for a new £20million dairy in Stirling.
In conjunction with housing developer Mactaggart & Mickel Homes, the dairy firm submitted planning for the Airthrey Green development which will include a public park, primary school, improved local road network, 600 houses, retail and leisure centre and the new dairy facility.
Mr Graham said the new dairy would include a new product development research facility and result in the creation of up to 450 jobs including 50 local apprenticeships.
He said he expected a decision on the planning application in the New Year.
The firm yesterday revealed plans to launch new spreadable butter varieties and a range of luxurious butters in 2015.
Marketing director Carol Graham said: “The continual feedback we receive from customers across the UK is really fantastic and it is our direct conversations with them that is driving our ambitions further.
“Our new product launches in the year ahead will allow us a greater opportunity to speak with the people that choose to buy our products.”