A farmers' cooperative has taken over the running of a creamery in west Wales.

First Milk has confirmed that it will manage the Felinfach cheese processing plant, near Aberaeron.

A spokesman for the Farmers' Union of Wales said that the deal would safeguard employment at the plant and maintain the facility under farmer ownership.

There had been fears expressed by FUW officials that Dairy Crest was the only prospective purchaser for the plant.

There had been calls for the owners, Milk Marque, to ensure that a buyer would keep the plant open and operate with the same staffing levels.

Anger over prices

Uncertainty last year over the future of creameries in west Wales prompted dairy farmers to picket plants.

The crisis was brought about over the future shape of the industry amid rows over the price paid to farmers at the gate for their produce.

Farmers were angry at receiving as little as 8p a pint, while consumers were paying 40p a pint.

The picketers were forced to disperse after a court order was issued against them.

Sixteen west Wales farmers who had been blocking the Spring Garden site in Whitland and the Felinfach Creamery, Lampeter, were told that if they did not move they would be in contempt of court and could face a substantial fine, prison or a seizure of their assets.

The groups of angry farmers had picketed depots with the intention of starving producers of their raw material.

The two-day dispute featured a stand-off between farmers on both sides of the argument.

The protest reached boiling point when thousands of gallons of milk worth £8,000 was poured on to fields at Raglan, Monmouthshire.

About 250 farmers in the area turned up to support the protest.