Farm diversification finance helps thriving cheese business to expand
In today’s evolving agricultural landscape, UK Agricultural Finance recognizes the growing trend towards farm diversification among British farmers. Faced with the necessity to adapt and innovate, farmers are exploring a vast array of activities, from agritourism to farm shops, to sustain and grow their businesses.
This case study highlights a particularly inventive farm business in Scotland, and illustrates how UK Agricultural Finance’s support and funding have enabled their ambitious expansion plans. By focusing on farm diversification, this farm exemplifies the potential for agricultural businesses to thrive through innovation and diversification.
From cheese to multiple thriving farm diversifications
In the verdant landscapes of Scotland, a family embarked on an agricultural transformation journey in the 1980s, focusing on speciality sheep and goat dairy products. Rooted in a desire to embrace and revitalise ancient Scottish traditions of sheep milking and ewes’ milk cheese making, the venture began modestly. It was a strategic move aimed at diversification, moving away from the uncertainties of government subsidies and adding value directly to their farm produce. This pioneering spirit led to the creation of handcrafted, iconic cheese varieties, which have since garnered recognition across Scotland and beyond.
Over the years, the demand for their unique cheeses grew exponentially, prompting the farm to adapt and scale its operations. The family’s commitment to quality and tradition has preserved and enriched Scotland’s dairy heritage, and showcases the enduring appeal of artisanal products in modern agriculture. This growth illustrates a successful shift towards specialised dairy production, highlighting the potential for agricultural diversification to enhance farm productivity and independence from government subsidies.
Diversification and self-reliance go hand in hand
Nestled in nearly 300 acres of versatile land, this Scottish farm balances grazing and arable efforts, and focuses on self-sufficiency. With around 60 acres dedicated to barley and 100 acres for silage and hay, the farm’s strategy is tailored to overcome the short growing season due to its high altitude and climate. Emphasising a low-input, environmentally sustainable approach, the farm prioritises producing high-quality fodder for their livestock’s diet, which underscores their commitment to efficient and green farming practices.
The farm embraces sustainability, generating a significant portion of its energy through two wind turbines, with plans to explore more renewable options. The sheep and goats are raised on a grass-based diet, supplemented during milking, which supports year-round cheese production. Pigs serve a unique role in waste management, specifically whey disposal, a by-product of the cheese-making process which would otherwise have to be transported and disposed of off site. Currently, the borrowers are consulting with an advisor on potentially accessing butchery services to enable them to sell their own pork in the farm shop.
The farm currently includes 300 Dairy Lacaune ewes, which are ideally suited to the altitude and climate of the farm. Alongside this, they have a herd of around 100 dairy goats, who are a mixture of breeds and tend to need more support to cope with the winter weather on this Scottish farm. But unlike the sheep, the goats kid several times a year, so they are able to produce goats milk cheese all year round. There is also a small commercial flock of more typical meat sheep, which supplement the farm shop and provide an additional income stream when the dairy ewes are dried off.
Growing and adapting the farm diversification
As the cheese business grew, the family decided to create a destination out of the farm. To do this, they needed to ensure the farmyard was laid out appropriately. The farm’s cheese-making and sales facilities were strategically organised around a central visitor parking area, and featured a shop and café that operates Wednesday to Sunday from 11 am to 3:30 pm. With an inviting outdoor dining space for warmer days, the site ensures a welcoming atmosphere for guests. The modern milking parlour, established in 2014, underscores the farm’s commitment to both quality dairy production and enhancing visitor experience.
The farm enhances its visitor experience with cheese tasting tours and options for hosting private events inimpeccably maintained facilities. Beyond the farm shop’s direct sales, an online purchasing service extends their reach, complementing a distribution network that supplies various farm shops across the UK. This combination of direct and online sales, alongside widespread distribution, amplifies the farm’s presence in the marketplace, inviting both local and distant customers to enjoy their renowned cheeses.
What will they use the UK Agricultural finance loan for?
The borrowers are utilising the UK Agricultural Finance loan to expand their diversified farm business by acquiring a second location, which currently operates as a cafe/farm shop. This new site features a barn-style building that houses a large coffee shop and retail area for local produce, alongside additional fields for grazing. Their plan includes moving some sheep to this new location to mirror the “working farm” atmosphere of their existing farm shop and cafe, further enhancing their farm diversification strategy.
During my visit to the new location, it was evident that the staff were skilled and dedicated. However, they highlighted that marketing efforts had been minimal, attracting primarily an older customer base. The borrowers plan to leverage their marketing experience from their existing operations to attract a broader demographic, including families from the 300 newly constructed houses nearby. This site offers better accessibility compared to their current farm shop, presenting a promising opportunity to expand their customer reach.