Mona Dairy confirms search for a new owner

More than 30 Welsh dairy producers, who had been supplying Mona Dairy on Anglesey, will have to move to new buyers after the cheese business confirmed it has been unable to secure enough funding to continue to operate in its current form.

A letter seen by Farmers Weekly was sent to producers on Tuesday (28 May) informing them of the decision.

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In the letter, Mona Dairy managing director Ronald Akkerman said: “We have secured an established dairy processing company as an interim milk buyer who will take your milk, should you wish it.

“Rest assured you will be paid for any milk supplied under the interim arrangement by that milk buyer.

“We will collect your milk in the short-term under this interim agreement, unless you notify us to the contrary and wish to sell your milk to another processor.”

The exact terms and conditions of the interim contracts are due to be confirmed imminently with producers.

Major investment

Mona Dairy had recently invested £20m in its site, with £3m being awarded as grants by the Welsh government.

The new site had plans to be the most sustainable cheese factory in Europe, create more than 100 jobs, and produce up to 7,000t of cheese a year.

The dairy remains hopeful it will be able to secure a new outcome for the business, which could potentially be under new ownership.

It also intends to keep its staff on for as long as possible as it explores different options.

On Friday 24 May, several directors had their appointments terminated, according to Companies House.

Meanwhile, company accounts for the year ending 31 December 2022 showed that the business had net current liabilities in excess of £10m.

Mr Akkerman said: “We have tried our hardest to deliver the best and most modern,  environmentally sustainable cheese processing plant for our farmers and for Wales and are devastated that we could not get it over the line. We were so close. But close has not been enough.

“We thank all of the many people who came with us on our journey, and are truly sorry we have come up short.

“The shareholders will be working tirelessly over the next few days to secure the best outcome for everyone involved in the Mona Dairy project.”