IF I told you that one way to improve the low business research and development spend and low productivity in the south-west of Scotland was a “digitally twinned dairy”, you might raise an eyebrow.

However, if I then added that this project will drive decarbonisation, support investment in R&D innovation, attract talent and develop a more entrepreneurial and skilled workforce, you’d hopefully want to know more.

Scotland’s Rural College (SRUC) is leading an innovative new venture with academic, industry and civic partners collaborating on what is formally titled the Digital Dairy Value-Chain for South-West Scotland and Cumbria. Awarded more than £21m from UK Research and Innovation’s Strength in Places fund, this venture is designed to achieve nothing less than a transformation of Scotland’s dairy industry.

This region, home to SRUC’s award-winning Langhill dairy herd, has an outsize 13% share of the UK's overall dairy herd, making it the nation’s second largest production area. It produces 1.6bn litres of milk annually with an estimated “farm-gate value” – namely the market value of a product minus its selling costs – of £477 million. This is impressive, but we can do better.

Particularly exciting for us is how this enterprise can meet the aspirations laid out in the Scottish Government’s National Strategy for Economic Transformation. It will foster entrepreneurship, create new market opportunities, add new skills to the workforce and lay the foundations for more productive regions, all whilst making the critical journey towards net zero. The recent strategy made clear the responsibility of educational institutions to help drive this change.

So what does the project do? Put simply, it utilises innovative digital technologies such as sensors, the Internet of Things, 5G communications and blockchain, complemented by advanced manufacturing processes, all to create an integrated and digitally connected dairy value chain.

Working with local and national businesses, this new endeavour will transform the region’s dairy production systems and establish it as a global leader in advanced, sustainable and high-value dairy manufacturing.

We will institute a commercial-scale demonstration of a digitally connected supply chain – one that can link sensing and data solutions in farms, transport networks and factories. High-quality sensors can monitor cow welfare whilst optimising low-carbon milk logistics. In addition, CENSIS, Scotland’s Innovation Centre for Sensing, Imaging and Internet of Things, will support sensor technology companies to develop a series of applications from farm to factory.

Most crucially, we will foster a talent pipeline that creates STEM opportunities in what we term digital-smart agriculture. Advancing prospects for young people and women, who are under-represented in agriculture, STEM occupations and business innovation is a critical part of our work. We have an ambition to create more than 600 jobs as a result.

Ultimately, we know from existing data – such as the Index of Multiple Deprivation – that there is significant untapped human capital in the region. In a post-Covid environment, the creation of an entrepreneurial culture, alongside the establishment of new, skilled employment opportunities will be especially important for everyone, and that is exactly what this work will achieve.

Wayne Powell is principal of Scotland’s Rural College