Rowan Glen is committing over £1 million to its Palnure dairy facility in Dumfries and Galloway, increasing production capacity and enabling the company to enter additional dairy product categories.
The investment comprises more than £600,000 from Rowan Glen, supplemented by a £400,000 award through the Scottish Government’s Food and Drink Processing Scheme Scotland.
Planned improvements include a revised factory layout, upgraded processing equipment and the introduction of high-care standards throughout the filling area. The project is expected to be finished by March 2027.
Once complete, the enhanced site will enable Rowan Glen to move beyond cultured dairy products such as yoghurt and begin producing products including cottage cheese. The facility will support cottage cheese in a range of pack formats, as well as increasing capacity for retail and foodservice production.
All of Rowan Glen’s milk is currently sourced from farms across Dumfries and Galloway. As output increases, the expanded manufacturing operation could enable the business to handle greater volumes of Scottish milk.
Adding cottage cheese to the product portfolio would create a further outlet for skimmed milk. Cream separated during processing could also be made available to other food manufacturers.
The announcement comes after the Palnure dairy resumed operations following the closure of the former business in November 2022, when 45 positions were lost.
Rowan Glen was subsequently relaunched as an independent Scottish dairy company by a nine-strong team headed by managing director Alan Baxter. Baxter had spent 17 years working at Rowan Glen over two separate periods before taking charge of the relaunch.
Baxter said: “When the previous business closed and everyone was made redundant, there was a real possibility that those 45 jobs would never return and Rowan Glen could disappear for good. A small group of us were prepared to take a big risk to make sure that wouldn’t be the end of Rowan Glen.
“We knew the skills and experience that existed in the team, and we knew there was real affection for the Rowan Glen brand across Scotland. Everything we’ve achieved since has been built on the commitment and hard work of that original team and the people who have joined us along the way.
“When you’re building a business, there’s rarely time to stop and appreciate how far you’ve come. This investment is one of those moments. It’s a massive step for Rowan Glen and a big vote of confidence in our people, the brand and the future of Rowan Glen.
“The Scottish Government’s Food and Drink Processing grant will allow us to accelerate our plans, significantly upgrade the factory and strengthen our manufacturing capability. It will give us much more flexibility to develop new products and move into areas such as cottage cheese, creating a better platform to innovate, grow and make more great Scottish dairy products here in Palnure.”
Since the relaunch, the workforce has expanded to approximately three times the size of the original team.
Today, Rowan Glen supplies customers across the retail and foodservice sectors, producing approximately 20 million pots and bottles of cultured dairy products annually at Palnure. Its branded yoghurt range is available through most of Scotland’s major supermarket groups.
The factory upgrade is designed to extend Rowan Glen’s production capabilities and create the additional capacity needed to support continued growth in both retail and foodservice markets.