* SHETLAND milk producers look set to buy the islands' only dairy. A

new company, Shetland Farm Dairies Ltd, is being set up to take over the

Freefield dairy, outside Lerwick, in a #1.2m deal.

The dairy used to belong to Kennerty Dairies, of Aberdeen, until being

bought over by East Kilbride-based Wiseman Dairies earlier this year.

Wisemans have now agreed a price to sell the property to Shetland dairy

farmers, and final negotiations are going on.

Shetland Islands Council development committee decided yesterday to

offer a loan of #600,000 towards the cost of the project. Chairman of

the management committee for the new company, farmer Willie Mainland,

said he was delighted that the councillors had given their support.

The new company will be owned by the members of the Shetland Wholesale

Milk Producers Association, plus two members of the present dairy

management.

There are 12 milk producers in the isles, who between them produce

around 600,000 gallons of milk a year -- meeting almost all of

Shetland's milk needs.

Meanwhile, work on a new agricultural marketing centre for Shetland

looks set to start, even though the cost of the project is well over the

original budget. Shetland Islands Council development committee heard

yesterday that the total cost will be #735,000 -- #135,000 over the

budget.

The co-operative, which has been set up to run the mart centre, had

hoped it would be operational in time for this year's lamb sales. But

delays caused by the first round of tenders being too high are expected

to put back the opening to next spring.