THE acquisition of Peninsula Milk by leading dairy business Milk Link was given the green light last week, by shareholders in the Okehampton-based company.

The deal announced last month was subject to shareholder approval. At an extraordinary general meeting of Peninsula Milk Processors Limited held last Thursday, voting shareholders passed the resolutions necessary for Milk Link to complete its equity investment in Peninsula.

The acquisition by the dairy co-operative further strengthens Milk Link's position as one of the UK's leading farmer owned, integrated dairy businesses.

Peninsula produces fresh milk and clotted cream for major retail, catering and manufacturing customers.

The acquisition of Peninsula is estimated to secure demand for 30-50 million litres per annum of Milk Link output, with the additional benefit of low transport costs.

Barry Nicholls, Milk Link chief executive, said: 'We are delighted to have acquired Peninsula's new, well invested production facilities right in our membership heartland.

'By increasing our processing capacity in the South West, we will be able to reduce transportation costs and in addition provide a platform for regionally branded products.'

Milk Link is owned by around 2,400 British dairy farmers who satisfy around 10 per cent of the UK's annual demand for milk.

The deal complements the recent acquisition by Milk Link of Liskeard-based Newlands Farm, another liquid milk processor, announced in December.

Peninsula was established by a group of farmers from Devon and Cornwall, following the deregulation of the milk market. It opened its processing facilities at Exeter Road Industrial Estate in Okehampton seven years ago.