UK organic dairy products maker Rachel's Organic has announced the opening of its £3m (US$5.6m) extension at its headquarters in Aberystwyth, Wales.

The extension, officially opened by Rhodri Morgan, Welsh Assembly Government First Minister for Wales, is expected to provide an extra 50 jobs, and will enable the organic dairy brand to treble processing capacity from its current 5 million litres of fresh organic milk per annum to 15 million litres per annum. The new development will also provide an extra 25,000 sq ft, bringing the total to over 40,000 sq ft.

The existing plant currently produces over 10 million pots of yoghurt per year. The company plans to fulfil the new production capacity by way of new product development and new marketing initiatives.

"The new facilities are a great 'good news' story for organics and will allow us to really motor with NPD. Consumer demand for organic dairy produce is strong and increasingly sophisticated. There is a real appetite for product innovation in brands people trust like Rachel's Organic. Food safety and nutrition issues are also currently high profile political issues with moves to encourage healthier diets, especially amongst children," said the company's managing director, Neil Burchell.