A state of alarm was raised this weekend as word spread amongst local farmers that First Milk were intent on shutting down the plant, causing the lose of many jobs and livelihoods.

A First Milk spokesman issued a statement on Tuesday to inform Bute farmers they had no intention of closing the creamery.

"It is just a rumour and it's not true," said Paul Flanagan. "We had a call from Councillor Robert Macintyre and we put it right and told him it was totally false.

"I'm not quite sure where it came from but the important thing in these cases is things have to be set right and that's what we've done."

Councillor Macintyre, a former First Milk director and one of 14 Bute dairy farmers supplying the creamery, told The Buteman he had received several concerned calls from local producers regarding the matter - and that one worried farmer had even turned up on his doorstep to discuss his options.

According to the councillor, rumours over the creamery's closure began circulating after a producers' meeting at the Townhead facility.

"I was not at the meeting but I understand it was stated that at this moment in time Rothesay Creamery is losing money," he told us.

"The quality of the cheese is as good as it has ever been but the sales of cheese into the high value markets have not reached expectations."

He informed us he had spoken with First Milk's area manager, Stuart Neish, who told him that no mention of possible creamery closure was discussed during the meeting.

"The rumour mill was in overdrive over the weekend," Cllr Macintyre continued.

"There are only 14 dairy farmers left on Bute and all have a considerable financial stake in the dairy industry on the island."