A CHWILOG farmer-owned creamery has announced a three-year £14.4 million expansion to increase cheese production by 50 per cent and create 30 new jobs by 2024.

The investment by South Caernarfon Creameries (SCC) is being backed by the Welsh Government with a £5 million grant from their Food Business Investment Scheme.

The dairy co-operative plans to increase production from 15,000 tons of cheese a year to 23,000 tons with an increase in staff from 130 to 160 over the next three years. This growth is projected to increase its demand for welsh milk for their plant at Chwilog, from its current level of 130 million to more than 200 million litres a year as turnover ramps up from its current level of £60 million a year to over £85 million.

Managing director Alan Wyn-Jones said: “Following our first phase of investment back in 2016, we’re pleased to announce the next phase of our business growth strategy which will make us even more resilient, efficient and sustainable in what is a ferociously competitive industry. We have grown strongly in recent years with our sales doubling in the last five years from £30m to £60m and have reached the current production capacity of the plant after major investment in our core cheese production and packing facilities back in 2016.

“We are not interested in growing for growing’s sake. Our plan is all about making us even more competitive and profitable and so more resilient and sustainable for the future.

“As a dairy farmer cooperative that directly leads to more competitive and stable returns for our farmer members from across North and Mid Wales, thus enhancing the competitiveness of the Welsh dairy sector and farm viability.”

The £14.4 million project will include new facilities for milk reception, additional cheese production and packing lines and a new whey processing facility. Investment is also planned for effluent treatment and improving its environmental and energy performance. The works are scheduled over a three-year period to be completed by 2024.

Mr Jones added: “2020 has been a year like no other for everybody and it remains a worrying time due to Covid with the health and wellbeing of loved ones rightly being everybody’s priority right now. Thankfully there is some light at the end of the tunnel with the rollout of the vaccines over the coming months.

“Another positive is that our future trading arrangements with the EU is finally clarified therefore we can move forward with our planned investment which will underpin our projected growth in the coming years.”