Forward thinking dairy gets set to double production capabilities
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About BV Dairy
For nearly 60 years, this Dorset-based business has been supplying premium dairy products to manufacturers, caterers and food retailers nationwide.Having begun by producing traditional clotted cream, today their extensive product range encompasses soft cheeses, crème fraiche, buttermilk and several types of yogurt.
The company, run by the third generation of the Highnam family, has a strong relationship with the local farming community. All the milk it uses is sourced from Red Tractor accredited farms within a 25-mile radius.
What did they want to achieve?
BV Dairy research showed an increasing appetite for cultured drinking products and they wanted to expand into contract packaging. As a family-owned business they took a long term view and were prepared to invest in the future not just the present as that would be added value for their customers.
The new chill store and bottling plant would be a significant investment but part of a bigger plan – the construction of a completely automated, energy efficient process plant to facilitate continued expansion.
How we helped
BV Dairy selected us as their capex partner through a competitive tender process. We arranged a £1.1m credit line, which to date they have drawn against for investment in Solar PV panels and a new bottling plant.
Over the next 20 years, the solar panel investment is expected to generate £444,000 profit for the business through payments from the government’s Feed-in Tariff.
- The new bottling line has enabled them to secure their first contract packaging customer in the cultured milk drink sector. Asset finance has also been agreed for the acquisition of six new blast chillers.
"Lombard are fantastically responsive and supportive of our plans. And it’s great to know that they – and the finance – are there when we need them."
FinancialDirector, BV Dairy
Our £1.1m credit line benefitted the business in a number of ways.
Enabled the business to meet increased demand. The new bottling line has enabled them to secure their first contract packaging customer in the cultured milk drink sector.
BV Dairy’s intent on expanding their sustainable practices through a solar panelled 13,860 sq. ft chill store was materialised through our lending policy for solar investments that aligns payments on the panels with the expected payback generated through the government’s Feed-in Tariff (FIT).
It is anticipated the installation will generate around £444,000 profit over the 20-year timespan for BV Dairy.