Dairy Crest has bought specialist milk business Proper Welsh Milk which went in administration earlier today.

Dairy Crest said it has paid administrators BDO LLP £325,000 for the company which employs around 40 people and packs local milk for Tesco and M7S among others.

Proper Welsh went in administration after being hit with cash flow problems. It was created in 2011 and invested over £1m in a new dairy on the former Whitland Creamery in Carmarthenshire, and had recently begun selling vitamin D enriched milk.

Dairy Crest said it was committed to supporting dairy farmers in Wales and was one of the country’s biggest milk buyers. However until now all of its Welsh milk was packed in England.

“We are delighted to be the new owners of this business which we believe has a bright future,” said Dairy Crest chief executive Mark Allen. “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.”