A PLAN to invest £40 million in a milk processing plant has been rejected.

Graham’s The Family Dairy has criticised Kevin Stewart, the Minister for Local Government and Housing, for dismissing planning appeal for 600 homes and infrastructure on land at Airthrey Kerse in Stirling.

Following a two-year appeal process, Stewart decided the development did not fit with the new Local Development Plan.

Robert Graham of Graham’s said: “We are extremely disappointed by the minister’s decision which appears to place more importance on continuing to protect a failed Local Development Plan process than supporting the delivering of much needed affordable homes, infrastructure and creating full-time jobs within the city and Scottish dairy sector.”

The family dairy business – in partnership with Mactaggart and Mickel Homes – first submitted the planning application for the development which includes 150 affordable units, a new primary school and public park, in 2014.