Dairy Farmers of Britain is creating the country’s largest milk cooperative, having acquired the Co-op’s milk processing business, Associated Co-operative Creameries, (ACC) for £75m (US$137m).

ACC is the UK’s number four milk cooperative and produces brands such as Dairygate, Dawn and Alive.

Dairy Farmers of Britain was created in 2002 by farmers who were concerned at their perceived lack of control over the milk distribution system, and poor returns from their contribution. It markets about two billion litres of milk a year from some 3,250 member farms and supplies more than 100 national and regional dairy companies.

The Co-op put ACC on the market in April.