Dairy Farmers churn their way to success

Dairy Farmers churn their way to success

The farming industry has faced a number of difficult years, with arguably dairy farmers some of the worst hit. Despite being the tenth-largest milk producer in the world, many UK dairy farmers are looking to switch to other types of farming or to close completely.

Undeniably these tough times are due to falling milk prices and softening demand from the export market. According to the Department for Environment, Food and Rural Affairs the average milk price in August 2016 was 21.34p per litre compared to 31.64p in 2013.

The toughening environment prompted Cornish dairy farmers Bill and Rachel Clarke, with the help of a loan from Lloyds Bank, to take the plunge and rebrand their business. 

Turning it around

Seeing dramatic falls in the price of milk, the pair and their two sons reinvented their business, the Trewithen Dairy, turning their attention from milking their own herd to producing milk products.

A major milestone in the business was a four-year development project funded by Lloyds Bank which was crucial in enabling the growth of the business.

The Clarkes now supply a huge range of shops, restaurants and hotels and is one of Cornwall and Devon’s biggest bottlers of dairy products including clotted cream and yoghurt.

The family pride themselves in only using milk supplied from local farmers within a 25-mile radius to create their award winning products. They value working with farmers who understand the importance of looking after their herd and are supplied with over 100,000 litres of milk every day

When you have a family like the Clarkes, with a vision to build a business like this, it's crucial to have the right funding partner onboard and I think the Bank has proved it has been the right partner throughout this project.

Andrew Wilton, Relationship Director for South West Mid Markets, Lloyds Banking Group

Helping farmers prosper

Lloyds Bank, alongside other well-known high street brands such as Bank of Scotland and Halifax, form part of Lloyds Banking Group. Together, we are committed to putting customers at the heart of everything we do.

We want to help businesses of all types and sizes to prosper, by offering the funding, support and encouragement they need to grow.  We’ve set targets to do this through our Helping Britain Prosper Plan. These targets include increasing the amount of net lending we make to SMEs and Mid-market companies. 

Our Plan goes beyond business as usual and sets stretching targets to address some of the biggest social and economic issues facing the UK.

Read more about our Helping Britain Prosper Plan here.

Footnotes
  1. Department for Environment, Food and Rural Affairs

  2. Department for Environment, Food and Rural Affairs