UK independent dairy Meadow Foods is investing in doubling the capacity of its fresh products factory in Peterborough.

The group will spend GBP1.3m (US$2m) to ramp up its capacity to process fresh creams, milks and cultured products, which are sold to food manufacturers. The group will install automated technology it claimed will reduce waste and improve efficiency. Work is due to be completed by the end of the month.

In the coming year, Meadow Foods plans to spend a further GBP1.8m to install new mixer tanks, inline standardisation and on-site storage. Meadow said the move would improve quality and give it “the capacity to produce enough packed cream to satisfy the entire UK market”.

The group said it has been able to ramp up investments on the back of a “very successful” 2012, when sales rose 13% and operating profit gained almost 5%.

“Our strong results have allowed us to embark on this exciting reinvestment project.  By further improving our capacity and consistency of product we believe we will continue to grow the business and bring greater opportunity to both our farmers and customers alike,” executive chairman Simon Chantler said.