Pembrokeshire Creamery Ltd will source its milk from local family farms to fulfil the 70 million litre capacity of the new processing facility, delivering a boost to local dairy supply chains and the wider economy.

FUW Policy Officer Elin Jenkins said: “The success of this investment is pivotal to the success of the dairy farming sector in south west Wales. The Welsh Government has previously invested £2 million into the Pembrokeshire Food Park site near Haverfordwest and this additional investment by Pembrokeshire Creamery Ltd demonstrates the benefits of creating sustainable and short supply chains for consumers in Wales."

Mrs Jenkins said the food and drink sector continued to be a key contributor to the local economy in Pembrokeshire and west Wales.

"We are therefore delighted to see further investment in the Welsh dairy sector through such an ambitious new project which will see milk supplied and bottled in Wales being available to consumers.

"This investment comes against a backdrop of scores of dairy family farms dispersing their herds due to the difficulty of attempting to run a viable and successful business whilst being under constant threat from Bovine TB, the uncertainty of the future Sustainable Farming Scheme and the severe impact and costs of the Water Resources (Control of Agricultural Pollution) (Wales) Regulations.

“Welsh dairy farms continue to produce high quality dairy products under challenging circumstances and this welcome investment should not only create employment within the local community but should also shorten the supply chain and provide new opportunities for local dairy producers," added Mrs Jenkins.