AN OKEHAMPTON farmers' co-operative has won three new major supply contracts in the South West which are set to boost its production by 50 per cent and increase its workforce.

Peninsula Milk at the Exeter Road Industrial Estate has added Iceland, Booker's Cash and Stores and the supermarket chain of Aldi to its list of customers.

The new work means the creation of at least 10 jobs and high hopes for the future.

Chairman of the company Sandy Loud said those farmers who took their destiny into their own hands three years ago were beginning to reap the rewards.

'Many people talk about setting up a business like this which is farmer-owned but we have actually done it and produced milk and processed it,' she said.

'Peninsula started up with 27 farmers and has now grown to over 100 — we made a loss in the first year but within 18 months we have turned it around and made our first profit.'

Milk is collected off farms from Truro to East Devon and the majority brought to the factory to be processed. Some is also delivered to Taw Valley Creamery at North Tawton and Ambrosia at Lifton.

The firm employs 60 people and processes 7,000 litres of milk a day. Peninsula Milk's bottled milks and creams can be seen in stores as far as Bristol and Southampton and its customers include Plymco, Ginsters, Spar and Waitrose.

Mrs Loud said not only had Peninsula secured many farmers' livelihoods but it had provided work for local people and a product which was locally produced.

'These new contracts will boost the throughput of the processing arm of Peninsula Milk by 50 per cent,' she said. 'Our plan is to keep expanding and bring more farmers on board.

'Instead of milk coming in from other parts of the country Peninsula is showing that local farmers can serve the vicinity themselves. We want to look after the community and the community to look after us.'

The chairman added that the company had lost a few farmers due to the foot and mouth crisis but she hoped they would be back on board in the future when disease restrictions were lifted.

'This company is all about farmers standing on their own two feet and trying to help themselves — nobody else is going to do it for them,' she said.

'With an extension rescheduled to start after the foot and mouth crisis and a profit in the second year of trading we predict that we will really start motoring in the next couple of years.'