Digital Dairy Value Chain in South West Scotland & Cumbria

Lead Participant: SRUC

Abstract

**VISION**

Creating 624 jobs and £64M p.a. additional GVA, the Digital Dairy Value-Chain will deliver an uplift in the rural economies of Cumbria and South West Scotland. It will develop a world-class research, innovation, business and skills platform to establish the region as a leader in advanced, sustainable and high-value dairy manufacturing. Inclusive, innovation-led growth will also deliver wider societal and environmental gains including reductions in carbon footprints.

The project will develop innovative technologies (e.g. sensors, IoT, 5G-communications, blockchain), infrastructure and advanced manufacturing processes to create a fully-integrated and traceable supply chain. It will generate new opportunities to optimise manufacturing, develop new products and markets, and valorise consumer concerns around dairy production.

**GEOGRAPHY**

Spanning national boundaries, Cumbria and SW Scotland produce 1.9bn litres of milk annually. As the UK's second largest milk producer, dairy manufacturing is an important source of economic activity and employment.

Our geography is remote and rural. Regional GVA is well below the national average, high-value employment opportunities are limited and business innovation activity is patchy. The impacts of BREXIT and changes to agricultural support will be significant. This project focuses on AgriFood manufacturing, sustainable exploitation of natural capital, and digitalisation; all are priorities for regional growth.

With 63% of our local authority areas having a negative prosperity gap there is significant untapped human capital. Social inclusivity goals cut across our activities particularly focusing on advancing opportunity for young people and women who are under-represented in dairying, STEM and business innovation.

**NETWORK**

We draw on an impressive network of world-class research capability (SRUC; University of Strathclyde; University of the West of Scotland); technology innovation centre (CENSIS); regional and multi-national dairy-processing companies (First Milk, Lactalis, Arla, Kendal Nutricare, Appleby Creamery); SmartSTEMs; and technology businesses (Lely, Seric, North). The project is backed by strong support from civic leadership.

**OBJECTIVES**

The project will:

* **Develop digital connectivity.** Establish the region as a beacon for digitally-connected, value-added milk processing.
* **Stimulate R&D.** Facilitate access to state-of-the-art infrastructure and expertise, catalyse collaborative R&D and commercialisation of innovative products and processes.
* **Facilitate business growth.** Provide business support and facilities for early ventures, scale-up businesses and established companies to undertake New Product Development (NPD) and process improvement.
* **Attract talent and skills.** Foster a talent pipeline that advances opportunity and enables industry to exploit new technologies and market opportunities.

This project leverages investments in the Borderlands Inclusive Growth Deal, Ayrshire Growth Deal, and Cumbria's Food Enterprise Zone.

Lead Participant

Project Cost

Grant Offer

SRUC £13,017,832 £ 12,182,087
 

Participant

LACTALIS MCLELLAND LIMITED £344,678 £ 172,339
FIRST MILK LIMITED £710,000 £ 426,000
COWS & CO GROUP LIMITED £1,021,425 £ 634,918
UNIVERSITY OF STRATHCLYDE
UNIVERSITY OF THE WEST OF SCOTLAND
NATIONAL MILK RECORDS PLC £690,946 £ 345,473
SRUC
KENDAL NUTRICARE LTD £1,333,188 £ 715,922
UNIVERSITY OF GLASGOW
UNIVERSITY OF STRATHCLYDE SIPF £3,569,906 £ 3,166,864
UNIVERSITY OF THE WEST OF SCOTLAND SIPF £2,689,223 £ 2,308,160
UNIVERSITY OF GLASGOW SIPF £850,009 £ 749,878
SMARTSTEMS £631,658 £ 631,658

Publications

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