The Farmers' Union of Wales today expressed disappointment that leading Welsh dairy co-operative South Caernarfon Creameries is pulling out of the local liquid milk market.
But the union's milk and dairy produce committee chairman, Holywell farmer Dei Davies, welcomed the creamery's multi-million-pound plans to concentrate on producing cheese and other dairy products.
"It is a shame that they are going out of the local liquid milk market but it is heartening to learn that they have secured a £50 million contract with one of the biggest cheese suppliers of the UK retail and foodservice sectors.
"We sincerely hope that this development will prove to be more beneficial for the long-term stability of the creamery," said Mr Davies.
"We are also encouraged by the announcement that they are planning to spend £10m on building a new cheese-making facility on their existing site at Chwilog by 2016.
"The co-operative say they want to add value to its members' milk and their recent actions are aimed at this objective. We hope very much that their plans will come to fruition in the near future."