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This item was published during the term of a previous administration that ended in April 2007

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Galloway investment bears fruit

15/12/2003

Scotland's only yoghurt producer is set to expand its premises and take on new staff after receiving £411,000 assistance from the Executive.

The investment will help Rowan Glen Dairy Products, based at Palnure in Wigtownshire, to safeguard 44 jobs and create 8 new jobs.

Making the announcement at a business breakfast in Dumfries, Deputy First Minister Jim Wallace said:

"Business growth is at the heart of our economic strategy. I'm therefore delighted that we are able to make such a substantial contribution towards the next chapter in Rowan Glen's success story.

"The company's turnover is forecast to triple to £9 million in the next three years. Their latest phase of investment - £1 million in total - will allow the company to capture new market opportunities including potential new business with Marks and Spencer.

"Rowan Glen's parent company were considering this project for Northern Ireland - I'm glad we have won it for Scotland. I know it will bring considerable benefit to the local economy, in Wigtownshire and throughout Dumfries and Galloway."

Minister for Environment and Rural Development, Ross Finnie, said:

"Scotland's dairy industry is widely recognised for the quality of its produce. Capitalising on that reputation, and indeed the wider reputation of Scottish farming as a source of premium produce, is one of the key strands of our strategy for agriculture.

"We want to see more of the value added through processing retained in Scotland, and to see producers moving closer to the market.

"This award recognises Rowan Glen's success in meeting consumer demand for high value dairy products and demonstrates the prize to be won by improving links between producers, processors and consumers."

Later today, Mr Wallace is holding talks with Dumfries and Galloway Council and chairing a Ministerial Taskforce for Local Economic Forums.

Funding has been provided through the Lowland Scotland Agriculture Processing and Marketing Grant Scheme, administered by the Scottish Executive's Environment and Rural Affairs Department. This will be used to finance a new building for packing and cold storage as well as the purchase of associated plant and equipment for the production of organic yoghurt, probiotic drinks and sour cream products.

Page updated: Wednesday, July 21, 2004