South west Scotland and Cumbrian milk producers look set to benefit from a £21.3m investment from the UK Government towards a Digital Dairy Value Chain to create a fully integrated and traceable supply chain that will decarbonise the region's industry.

The investment, which will be part of the UK government's Innovation Strategy, sets out plans to make the UK a global hub for innovation by 2035, when the area produces 1.9 billion litres of milk per year.

As well as providing a fully integrated supply chain, the Digital Dairy Value Chain will help deliver advanced manufacturing processes to help businesses to develop new products and explore new markets.

The project will also provide world-class opportunities for research and business innovation in advanced, sustainable, high-value dairy processing. It will work with the dairy industry to develop and introduce technologies for sensing and data handling, as well as infrastructure to support innovation and growth for local businesses.

Delivered through UK Research and Innovation’s (UKRI) flagship Strength in Places Fund (SIPF), the funding will help to decarbonise and renew the dairy sector in Cumbria and south west Scotland, creating more than 600 new high-skilled jobs and boosting the local economy by £60m.

The Digital Dairy Value Chain is one of five major research and innovation projects announced as part of SIPF. Each combines industry, local leadership and research and innovation expertise to help maximise an area’s potential and drive productivity.

The projects will receive a share of £127m government funding via SIPF and as a result will leverage more than £110m from research organisations, businesses, and local leadership.

UK Science Minister Amanda Solloway said: “The fantastic work the Digital Dairy Value chain is doing shows that science and innovation are not just for Silicon Valley start-ups, but for dairy farmers too. By using the latest technology for sensing and data handling, the industry will create jobs and opportunity across South-West Scotland and Cumbria.

“This £21.3m investment is part of the UK Government’s Innovation Strategy we have published, which outlines how we plan to harness the skills and ingenuity of every corner of the UK in order to cement our status as a global science superpower.”

Professor Wayne Powell, principal and chief executive of Scotland’s Rural College (SRUC), said: “This funding is wonderful news for the dairy industry in Cumbria and South-West Scotland, as well as for the renewal and decarbonisation of the industry as a whole.

"It will provide a world-class platform for business innovation in advanced, sustainable, high-value dairy processing. SRUC and our partners are excited to be moving to the next phase of this fantastic project.”

The Digital Dairy Value Chain is led by Scotland’s Rural College, in partnership with the University of Strathclyde, University of the West of Scotland, CENSIS, First Milk Limited, Lactalis McLelland Limited, Kendal Nutricare Limited, Cows and Co Group Limited, National Milk Records PLC, SmartSTEMs.

The £21.3m investment is part of a total £36.9m secured through additional investors.