Yorkshire dairy is cream of the crop after expansion supported by Lloyds Bank

Senior opperations manager Mike Oversby, left, and commercial director Paul Mason at Dales Dairies near Skipton, North Yorks

A dairy farm in Grassington is set to double capacity with the opening of a new warehouse in Keighley, following a six-figure investment from Lloyds Bank.

Town Head Farm is a family-owned milk producer and distributor, led by David Oversby, grandson of founder William Oversby. It sells milk and juices to wholesalers, caterers and supermarkets, as well as to regional doorstop sellers across Yorkshire and the North West from its production site at the foot of the Yorkshire Dales. The dairy’s 80-strong team also supplies milk to local schools and NHS hospital trusts.

The £14million turnover business saw demand soar during the UK’s three lockdowns, as appetite for doorstop milk deliveries grew exponentially, and the team recognised the need to boost production capacity to meet demand and drive growth.

Now, the finance package from Lloyds Bank – an £800,000 loan – is being used to support the purchase of new equipment, including a glass bottling line and bottle washing machine. As production ramps up in Keighley, Town Head Farm will now use the original site in Grassington to support the development of new products, including juices, dairy-free alternatives such as oat milk, and own-brand cheeses.

Paul Mason, commercial director at Town Head Farm, said: “Dales Dairies is a third-generation family business, and we are always looking for new ways to supply the highest quality products and create local jobs in Yorkshire. The pandemic generated huge demand for doorstop deliveries, which looks set to continue, and our expanded site with more efficient equipment gives us the room to grow to meet that demand.

“This marks the second time that the team at Lloyds Bank have supported our growth ambitions, after helping us with the initial purchase of our Keighley site. We are now in a position to unlock a new phase of growth at Town Head, serving even more customers across the North of England and helping to support the regional dairy farmers who supply our milk.”

Alexandra Butterworth, relationship director at Lloyds Bank, said: “We’ve worked with David and the team at Town Head Farm for many years now, and it has been so rewarding to watch the business go from strength to strength. They have emerged from a challenging 18 months stronger than ever, seeking out new ways to grow and adapting to changing consumer behaviour.”

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