Milk Link has sold its Newlands Farm milk processing business to Robert Wiseman in a deal worth £5.5m if competition watchdogs approve it.
The farmer-owned business has also clinched the contract to supply 110m litres of milk a year to Wiseman’s new Bridgwater dairy in Somerset.
The co-op said in a statement that the tie-up would give it a ‘profitable and secure’ outlet for milk for the next three years.
The sale of Newlands includes the retail business and dairies at Okehampton and Pensilva. But Milk Link will continue to supply milk for both of them.
Milk Link’s chief executive Barry Nicholls said he was delighted. “It provides another profitable and secure outlet for our members’ high quality, South West milk and will substantially increase the volumes being processed within our membership heartland.”