UK dairy group Dairy Crest has acquired small specialist regional milk group Proper Welsh Milk.

Dairy Crest snapped up the firm from administration for GBP325,000 (US$526,022), the company revealed. Proper Welsh has been hit by cash flow problems and went into administration earlier today (1 March).

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Proper Welsh Milk was created in 2011 and invested over GBP1m in a new dairy on the site of the former Whitland Creamery in Carmarthenshire.  It now employs around 40 people and packs local milk for Tesco, Marks and Spencer and a number of other customers.  

Proper Welsh has been hit by cash flow problems and went into administration on 1 March 2013.

Dairy Crest chief executive Mark Allen said: “We are delighted to be the new owners of this business which we believe has a bright future. Our priority is to maintain supply to customers and use this modern dairy in a strong milk field to help us to develop new products, such as vitamin enriched milk.”

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