Things can only get butter..

State bulk-buy plan to help bakers

THE Scottish Government plan to help bakers bulk-buy butter to survive a dairy shortage.

Ministers have announced a study to find out whether the plan will keep biscuit makers in business during the current “drought”.

A supply shortage, combined with rising demand, has seen wholesale butter prices rise to record highs this year.

In July, the boss of dairy giants Arla warned the UK could face a butter and cream shortage this Christmas.

Peder Tuborgh said there was insufficient milk being supplied by farmers to make the products.

Now Rural Economy Secretary Fergus Ewing has announced a study to see if collective buying and storing of butter was an option to help combat shortages and rising costs.

The Scottish Agricultural Organisation Society have been tasked with the work, which will also look at possible ways to combat volatility in the butter industry.

Ewing told an audience at the RBS food and drink conference that the sector was a “significant and growing part of our economy” and ministers wanted to support manufacturers “particularly during times of economic pressure”.

He said: “We expect to see the outcome of the study within the next month and look forward to supporting the industry in whatever way we can.”

The study is being funded from the £1million Market Driven Supply Chain project