High hopes for creamery (From Western Telegraph)

High hopes for creamery

Dairy farmers supplying the Dansco creamery at Newcastle Emlyn are pinning their hopes on a milk price rise following a buy-out by an international processing business.

Hebatco International General Trading Ltd plans to increase output at the mozzarella cheese factory and widen its product range. There is a suggestion that its first priority will be to set up a line producing feta cheese.

Danscos managing director confirmed that Hebatco had exciting plans for the plant. Said Geoff Calder: Hebatcos focus on developing added value dairy products will ensure the future for everyone associated with the Dansco business. Its employees, farmers and suppliers will all benefit from this change of ownership.

Dansco has been a wholly-owned subsidary of McCain Foods GB since 1988 but, as a third party dairy supplier, the factory was no longer central to the growth objectives of McCain in Europe.

Hebatco has been searching for a Welsh processing site for seven months. Dansco proved to be the best option based on the quality of the milk field, the expertise of its 100 staff and the opportunity to expand the current operation.

Around 200 West Wales dairy farmers supply the plant with milk including the Williams family, of Parc-y-Marl Farm, Llysyfran.

They are optimistic that the buy-out will lead to an eventual milk price rise. Our opinion is that it is a good move, this new company has got an interest in the product, said Joy Williams.

The general feeling is that they are going to increase the production capacity which means they will have to buy more milk. It may mean a better price.

Hebatco International has operations across the world but its head offices are based in London and Kuwait.

Its latest acquistion will continue to trade under the Dansco name. The Welsh Development Agency will be working with Hebatco to develop the site.

Its agri-business manager in West Wales, Geraint Williams, said the acquisition would safeguard the long-term future of the site and viewed it as a major boost for the West Wales dairy industry.

It is a major vote of confidence for the dairy industry in Wales that another major player has chosen to locate here, he said.