The Plymouth-based group hopes the deal will help improve prices for farmers in the South West.

Milklink's takeover of three processing plants in Frome, Crediton and Kirkcudbight in Scotland, will make it the UK market leader in UHT milk and dairy products.

In six months time the Express flavoured-milk plant in Manchester will also come under the deal.

Stable prices

The takeover means the co-operative can now process more than half its members own milk.

Members will also benefit from the money generated when raw milk is turned into products like cream, yoghurt custard and soft cheese.

The deal means the price Milklink's farmers get should be more stable because over-supply at peak times of the year, and cheaper imports will have less impact.

The Express Dairies group is reported to be selling off the plants to reduce its debt problems.