Dairy Crest has announced it is investing £85 million to help grow its cheese business, including in its Davidstow creamery in Cornwall.

Dairy Crest will be investing £75 million at Davidstow to allow further growth of the company’s market-leading cheese brands Cathedral City and Davidstow, plus the enhancement of its whey production capacity

The company believes the investment will allow them to process an additional 200 million litres of milk every year and will be a boost to the 200 people employed at Davidstow.

Mark Allen, chief executive, said: "Dairy Crest is proud of the role it plays in the economy of the South West, and this £85 million investment is a vote of confidence in the Cathedral City brand, our employees and our farmers.

The partnership we have with our farmers is absolutely crucial to our business and this investment should give them the confidence to invest in their own businesses, increase their productivity and enhance their important role in protecting the rural environment.

“As a major local employer, we are committed to being a responsible member of the community in Davidstow, and we have planned this investment carefully to minimise the impact of our creamery on the local environment and to become self-sufficient in water use.

"This is good news for the economy of the South West and for Britain’s farming sector.

"We hope this investment will increase confidence and resilience when and where it is needed most.”